This was recently posted over at CAG and confirmed with these ad scans:

This was to good a deal not to pass on. you basically get $100 worth of Blu-ray movies for free. If anyone is on the fence now is the time to pick one up, I only wish I would have waited. :(. In anycase, if this becomes common knowledge imagine what it would do for sales.

Deal like this will keep the image of PS3 as more of a blu-ray player then a gaming console.

Wander if such an image is wot Sony needs from PS3...

Of course Sony wants to sell Blu-rays too. They make royalties on each one sold. I Am pretty sure they had to authorize this so they must want it.

yeah would be nice but it is still to expensive to buy right of the shelf

You could always take the free blu-ray movies and sell them for cash. (Or slightly immoral, take them back to Walmart without a receipt and get a gift card.)

hmmm....

I may do this... though the lack of BC is concerning as my PS2 won't live forever.

Might just wait and ebay a 20/60/80 GB later this year. 

@Kasz216 Check your local Sam's club for a 60GB model. Mine still has one left (it's the display model) and my borther just got one there in March.

I'll have to do that. Will have to borrow my dad's card though. They still do that right? The card thing where you need to pay like 30 dollars a year to buy stuff. It's been a long time since i've been in one.

Or did they open up the store to the public? (Without havign to pay said entry fee. 

You still have to pay, except its 40 a year now. However, I've saved over $60 in gas alone from Sam's not mention $75 on my LCD TV, another $10 on Wii Fit, $5 on Mario Kart, and $5 on Smash Brothers.

(Most video games they sell are at least $5 under retail value)