Question about PS3 *40* Gig

[Kevinator]

Hello guys,

I have recently made my decision to use the PS3 as my Blu Ray player. I was all set to by the cheapest model - the $400 40GB version.

I have heard and read some concerns that I want to make sure that this particular version of PS3 is capable of.

And please remember, this question really applies to the 40 GB version. If there are features that higher models support that this one doesn't, please make that clear. So with that in mind, will the 40 GB version support:

* HDMI so I can watch my movies in 1080p (somebody has already told me on these formus that the PS3 will support 1080p, but since but I don't know if the model of PS3 makes a differnce I just want to verify)?

* Will it play standard DVD's? I figured it will, but I would like confirmation from people who know.

* I have also heard that there are backward compatibility issues saying that the lowest model of PS3 won't play PS2 games and that you would need a higher model to have *limited* chances of PS2 games working. Is that true?

Thank you for your time.

Kevin