All the signs point towards a 399 PS3 coming out but I would go ahead and pull the trigger now since I think you get a better value with the 60 gig.

Also 5 free BR mail in rebate will expire Sept 30th so I would go ahead and jump on it asap if I were you.

The 60 gb PS3 that is available now with the 5 free Blu-Rays is much better than the 80 gb system that uses emulation to play PS1 and 2 titles. I went ahead and picked up my second PS3 a few weeks ago to take advantage of the free titles and to get what I think is the better model.

Unless your HDTV is several years old and only supports 480p and 1080i. If this is the case, the fact that the PS3 stupidly does not include a scaler will screw you. Unlike satellite or cable boxes, the PS3 will take the 720p and downconvert it to an unimpressive 480p. Given the same situation, the satellite and cable boxes will take 720p and upscale it to 1080i to still provide HD. This is a significant flaw in the PS3 and limits you to 1080i or 1080p titles to get HD gaming.

True...most games are providing 1080i scaling capability to the PS3 now, aren't they? I thought this was a mostly resolved issue?

That's good to know. I'm new to PS3 as my original post indicates and assumed too much in regards to the games.
We bought two games and after my wife played her spectacular looking 1080i game for a while, I stuck in my 720p boxing game and was greeted with this problem. I wonder how you can tell which 720p games will upconvert to 1080i and which ones won't?

I have a 65" rear projection CRT Mits HDTV that I had ISF calibrated and am very fond of. I've pledged to keep it until it croaks so I'm in this situation for some time to come. I'm not going to move the PS3 to my 32" LCD with HDMI everytime I want to play a game, so a list of compatible games would sure be helpful.