I finally took the plunge a couple days ago and bought a new 80 gig PS3 with three games:  Valkyria Chronicles, Killzone 2, and Little Big Planet.  I love it so far, it's been a great addition to my collection.  The only problem I've encountered with it is that the Wifi seems to mess with all wireless devices connected to my router whenever I do anything (start/quit a game, sign on to PSN, etc.).  I'll just have to live with it until I can get a new router.  Other than that I'm really glad I took the big hit to my wallet.

Valkyria Chronicles is the game I'm currently playing and I'm really loving since I'm a Strategy and RPG fan.  I'm really digging the combat system, and the fact that all the characters have voice acting and unique portraits.  I've only gotten passed Chapter 3 but I'm really having a blast (I'm going back to playing it after I'm done with this post :) ).  I tried out a game of Killzone the first night, I enjoyed but I'm definitely more a fan of Modern Warfare so getting used to KZ's controls is going to take awhile.  I've played Little Big Planet before a few months ago and I really loved it, especially with four other players in the room.  I need save up some more money to get three more controllers before I actually start playing that, but in the mean time I'm going to play around with the level editor.

My current list of games to get later down the road are:

Uncharted 1/2
Warhawk (I have a copy I won at a tournament but I can't seem to find it)
Infamous
Heavy Rain

If anyone can give me some suggestions for PSN games I would really appreciate it.  I'm definitely going to be getting Fat Princess when it comes out and I'm currently eyeing Rag Doll Kung Fu as a possible purchase.

If you'd like, add me on PSN:  RDBRaptor.

I'm sorry you own a 360 :/

And don't waste your money on Infamous if you own Fallout 3, same game different main character.

Uncharted 1 is absolutely amazing.

Stardust HD blows every other two stick shooter out of the water.