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kn said:
Get on the sony website and take advantage of the 350 PS3 with 150 discount by using their credit card. It's a smokin deal and if you have a HD TV, you are set. You still get 5 blueray movies so you get a freakin smoking deal. If I had a high def TV, I'd already have ordered one. Sadly, though, I don't so the extra feature of Blue Ray does me no good at the moment and with a 360 I've got more games than I can play at the moment.

Yea go for the $350 PS3 deal, you will get 5 free Blu-ray movies with it too like kn said. Also if you want go for the 80GB version since you get it much cheaper anyways and would get Motorstorm which is a good game for it's online racing.

As for games Warhawk will be a amazing. Get Resistance Fall of Man, Ninja Gaiden (if you want an insanely hard hack and slash), theres plenty of PSN downloadable games that with $60 you can get like 4 - 6 games, and theres plenty of cool games coming out like Unreal Tournament 3, Haze, Ratchet and Clank, Uncharted (Sony's Gears of War), and like you said Heavenly Sword. Idk about Lair yet, I have it pre-ordered but ill have to give my opinion once I play it but it does look fun. 

The PS3 also has DVD, PS1, and PS2 upscaling if your TV supports it (newer HDTVs do, mine doesnt =[ ). 



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