If you want PS2 compat, get a 60gb version and update the firmware. Otherwise, games = look like poo on HD. But they do save to your hard drive, and you can get something to port your old save data if you don't feel like starting every game over.
I would caution, I don't believe they've fixed the lack of Guitar Hero 2 working problem as of yet, or they did long ago and I've missed it. So if that was part of your scheme, keep your ps2, which is also a DVD player?
See Ya George.
"He did not die - He passed Away"
At least following a comedians own jokes makes his death easier.