The folks over at IGN have posted a nice detailed summary
of the PS3 system menu. It looks like they've gone through every nook and cranny in the thing as it's a pretty exhaustive read.
One thing that sticks out is that the PS3 will not upscale or enhance PS2 and PS1 like the Xbox 360 does for Xbox games. It is kind of a bummer but not that big of a deal in the overall scheme of things.
- UPDATE - IGN has posted an update saying that in the interview notes the response was vague on the issue of upscaling of PS2 and PS1 games. It still might happen so until they or someone else clarifies this issue we'll leave it as unknown for now. On another note, I am sad that that the PS3 won't upscale DVDs. - John