But you can play ps1 games. It's kind've pointless, because if you didn't care about ps2 BC you probably wouldn't care about ps1 BC, but hey, it's free, so why not still throw it in.

 It depends if you buy one with BC or not.

I have a 60gig

 To clarify on Konnichiwa's statement, 40gb ps3s won't have ps2 BC, but all other ps3s will.

 Then you have 100% BC with ps1/2 games. :D

 I thought that even with EE BC wasnt 100%?

I never knew this! I played my PS2 games on my PS2.

So I can put MGS3 in my PS3, and it will work?

 And it will be upscaled to HD with better AA, assuming you have an HDTV. :)

 lol, and people are making a fuss because the 40gig wont be compatbile? Yes, you'll be able to play it.

The 60gig PS3's with both the EE and GS don't have complete 100% backwards compatiblity, but I believe it's like 97-98% (not totally sure on that number). The PS3's where the EE has been removed should be able to play PS1 games alright, but the percentage is lower for PS2 games. I don't know how many times they have updated that list, but I believe I had read a percentage of high 70's. 

Sony also has websites where you can check to see if a title will work or not and you can search for all your games (I've never used it though, I don't have many PS2 games anyway). 

 All games work with the EE that I know of.  They had some funny graphical glitches with all ps1/2 games at first (all games had horrible jaggies on HD sets) but those were fixed with one of the earlier updates (1.3, I think).