I want to get a PS3, but I need to make sure it is compatible with my TV. My TV only has 1 HDMI port, and component wouln't be so great since I have 2 comp. ports which are already in use via Wii and 360. Also, I wanted upscaled PS2/DVD, which only HDMI can do.

Not sure if I am understanding the question, but the PS3 only uses 1 HMDI port. 

You can upscale games over component, but not commercially released movies.

umm let me guess 1

You my friend need to invest in a nice receiver.

But as for your question you only need a single HDMI port.

Whats a reciever? I am only going to play/watch in 720p since thats my TV's native resolution.

The receiver is the thing that you connect all your stuff to (PS3, 360, cable, whatever) along with any external speakers you may have and then that connects to your TV.

The beauty of the receiver is that they almost always have more inputs than your TV and they are the things that allow you to have surround sound.

And I'll let someone who knows more about this stuff explain further.  Just in short-- they're good.

The receiver might be a pricey solution. I simply use an HDMI switch with multiple inputs and a remote.

well the buet about ps3 is.............. i use hdmi for the picture, but i still have a componant lead plugged into my ps3 at same time, only diff i use the componant leads for the audio out.

you can select a diff audio out from the xmb

1 but i'm still really confused on how you phrased your question.