Hello, and welcome to our little forum.
1. I would reccomend a PS3. It has more capabilitys than a standalone player. (Wireless Internet, hard disk, memory card...ect)
2. Regular DVDs will play in a Blu-ray player, and will also be upconverted so they look high definition, so you will have no use for a DVD player.
3.
DVD- 4.7 GB
HD DVD- 30 GB
Blu-ray Disc- 50 GB
The difference between Blu-ray and HD DVD is obvious, considerably.
-Aaron
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