Kotaku is reporting that PS3 firmware update 1.90 has hit in Japan and they have a list of what they got. This could probably mean that we'll be getting this update on Thursday.

" The 1.90 Firmware update just hit Japanese PS3s. Let's dive in and see what the update entails:
• Ability to rearrange games on the XMB
• Option menu now includes "eject disk"
• Press triangle to eject games/CDs/movies in the XMB
• XMB backgrounds
• Change the folder classification
• Emoticons
• Change CD output to 44.1/88.2/176.4kHz
• Force 24Hz output for Blu-ray over HDMI
• Change PS3 video settings in-game
• "Bit Mapping" in the "Music Setting"
• Save AVCHD type animations from a Memory Stick
• Change settings like upscaling while playing PS and PS2 games
• Add bookmarks
• Web browser security function in the browser's tool section
• Avatar moves during audio visual chat
The customized backgrounds and the emoticons are nice touches. Not a bad update, not a bad update at all. Hit the jump for a look at the emoticons."

http://kotaku.com/gaming/making-things-better/190-ps3-firmware-update-hits-japan-281191.php

I welcome XMB backgrounds (Finally!) and changing upscaling and video settings in game on PS and PS2 games is definitely useful.

Edit: This update is supposed to come out today in the US along with a PSP firmware update.

 Finally. I was really astonished with fact current firmware doesn't support wallpapers...

If it's coming out today, that's cool. I was just taking a guess that it'd be coming out on the Thursday updates.

Well, that still leaves hope for a Heavenly Sword and Lair demo this week.

when in Europe ? 26/07 ?

Heavenly Sword Demo hits EU store this thursday, don't know about US.

Full update:

PS One games:
- Crash 2
- Spyro 2
- Medievil
- Wipeout 2097

PS3 Demos:
- Heavenly Sword

PS3 Trailers:
- Ratchet and Clank: Tools of Destruction
- GT5 Prologue

Will anybody get Crash Bandicoot 2 if it indeed comes to as a classic PS1 download? I think there is a BC problem with the original version of that game. Whenever I try and play it on the PS3, it feels slower than normal with slower music to boot. lol.

At first I thought it was just PS1 games in general, but my cousin's Castlevania:SOTN works just fine with full screen upscaling and smoothing turned on. I'll have to test more games.

Sony sabotaging BC to sell remakes of old games confirmed!!! ;)

lol, they need to add the PS1 Final Fantasy games and I'd be so happy if Dino Crisis 2 came to the PS1 classics, I enjoy that game.

 Two things:

1. Old FF games from the PS1 will not be released on the PSN because SE will probably remake them and sell them as fully price games.

2. Dino Crisis can be purchased on the Japanese PS Store and we still don't have it here. So can Resident Evil 1, ridiculous...