If you want to get really hardcore, you can also partition the hard drive and install Linux onto it, and it will be a functional PC on top of all that, the only downside being that it's ram limited, and the GPU is currently locked out.
Also
40 Gig $399
- Plays PS1 games
- Plays PS3 games
- 2 USB ports
- Wifi [edit]
60 Gig $499 (hard to find)
- Plays PS1 games
- Plays PS2 games (near flawlessly) (Also allows smoothing and upscalling)
- Plays PS3 games
- Has all manner of memory stick ports, SD reader etc
- Wifi
- 4 USB ports
80 Gig $499
- Plays PS1 games
- Plays PS2 games (through partial emulation) (Also allows smoothing and upscalling)
- Plays PS3 games
- Wifi
- Has all manner of memory stick ports, SD reader etc (I think?)
- Comes with a game (Motorstorm) (If not unbundled)
- 4 USB ports
You can use any laptop sized hard drive in your PS3. In fact a 500gig hard drive was just announced if the top of the line 160 gig Hard Drive isn't enough for you.
PS3 supports
MP4
DivX
WMV
etc.
You can arange your photos and have them displayed it whatever order you like, listen to music whilst doing so. You can queue up your favorite playlist while surfing the internet. It's really really absurdly slick. THere's still some things they need to sort out, not every AVI or Xvid file will work yet, and they don't have in game XMB (yet) but you really can't go wrong if you're looking for the ultimate media center device.