Just spawned a new thread after checking out some of the pictures linked to in the 'inside ps3' thread...
The apparently leaked news that had been circulating for a few months was true - that software emulation wasn't achievable to emulate the PS2 and PS1 and that Sony have had to incorporate the PS2 chipset (Emotion Engine + Graphics) into the hardware design of the PS3 ... there's the link to the picture of the chip on the PS3 motherboard:
http://pc.watch.impress.co.jp/docs/2006/1111/ps3_37.jpg
The apparently leaked news that had been circulating for a few months was true - that software emulation wasn't achievable to emulate the PS2 and PS1 and that Sony have had to incorporate the PS2 chipset (Emotion Engine + Graphics) into the hardware design of the PS3 ... there's the link to the picture of the chip on the PS3 motherboard:
http://pc.watch.impress.co.jp/docs/2006/1111/ps3_37.jpg