[sigh]
it amazes me that on a forum dedicated to BD, there are people trashing the PS3 as if it was second rate. In actuality, it is easily going to be the platforms savior - there, I said it, people who would not spring for a grand, will spring for 600, and that volume of players will speed the launch, and carry the platform until lower cost players come to market.
FYI, The PS3 is a fully functional BD player!
On the video side, it does not currently upscale, why? because Sony wants to leverage the developers into actually using 1080p, not just port over crap and have the box magicly turn it into 1080p - they have already said that this was eventually going to be changed by a future firmware upgrade.
On the audio side, it does: Linear PCM of many types, Dolby 5.1, DTS 5.1, AAC, and 7.1 (via HDMI only)... And it does ANALOG! There is a cable that comes with the player that plugs into a funky little plug on the back of the player, and and the other end terminates in analog audio and composite video.
As for updating the soft/firm ware on the PS3, you plug in an active ethernet cable, and click on system update... that is all there is too it.
Bang for buck, you can't beat the PS3
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