I just read an article on the Playststion.blog, which mentions an update for burnout paradise. Along with a host of new features, the update also includes one noticeable feature, which is "Support for Custom Soundtracks...". Now it doesn't just say custom sountracks, it mentions support for it, which I guess suggests that the game will obviously support the feature, rather than provide it.

The update is set to be released on the 10th of July. So chances are that it is being released before E3.

Could it be this week? Or maybe next week?

Link to Feed

According to a source on NeoGAF, it'll be coming the 26th.

I hope that the FW is released as in-game XMB would be a great feature

 no chance, in my opinion.

http://www.neogaf.com/forum/showpost.php?p=11616710&postcount=1600

 According to a source on neogaf, it was coming on june 10th

Custom soundtracks refer to in-game custome music.It probably means to upload or stream your songs from the hardrive to the game.This has nothing to do with in-game XMB.

if they dont show any video TODAY, then dont expect it THIS WEEK.

Thats all I have to say.

 Yh, i agree. However i do think it is coming sooner than most people think, perhaps the 1st?

 yes, but the update doesn't mention providing it, it merely mentions supporting it. meaning that the in-game xmb feature may have custom soundtracks for games that support it.