I'd suggest keeping an eye out for the blueray dying on your PS3, as it did that on mine. Sony wanted me to pay for the P&P to send it to them, plus parts and labour. In total would've cost me close to £100 to get it fixed, and that was only after a couple of weeks of owning it.
Also will say, there is no point getting Parappa the Rappa or Vib Ribbon, etc. Very very very few PS1 games actually work on it. Support for them has improved but it's not even on-par with homebrew pc emulators yet. Something that I found quite disappointing.. it's only recently that PS2 compatibility has improved much either.
There are a few games I could recommend for it, but the all have 360 equivilants that a) load quicker, b) don't look any different, c) have achievements and d) controls are more responsive for. So for the moment any multiplatform games I would recommend the 360 version over the PS3 one.
On I would recommend for the PS3 though is Strangle Hold, while the game itself isn't exactly amazing it does come with Hard Rain which is a pretty sweet movie. The game isn't too bad either, not good but not bad. I mean think of it as a decently version of Path of Neo.
So far I've found my PS3 has been relegated to basically playing old arcade games they have on the PS-Store. I'm sure they'll have some better games and such coming but Resistance is very short and so generic it could've just be called "Generic Alien WW2 Shooter" which doesn't really have any graphics that make you go "man that looks awesome" ever while playing it. It's like Rainbow Six Vegas for the 360, relatively nice graphics but once you scratch away the surface you're left with the gameplay and story. Luckily Vegas redeems itself with gameplay, but for the love of god don't get the PS3 version of that game.
Online play also falls in to the same love-hate catagory as the PS2. It's there, and games run.. but it's too reminisant of trying to find a decent server on Counter-Strike. It's fun while it is still novel, but past that you won't really touch it much.
Something I would recommend if you can get it is Warhawk, as that is quite a fun little game.
Right now all I'm really waiting for is LittleBigPlanet, no idea when MGS4 or FF13 will finally be released. As for Heavenly Sword, past being absolutely gorgeous with what they say will be an awesome storyline; the game itself is very Prince of Persia Sands of Time. That would be cool, if 90% of the game wasn't bloody combat. I'd also recommend that the demo is completely pointless, I mean Chris was being generous saying it was 10minutes long.
Literally all you get is, a short intro (<2min) which is the majority of the demo .. run down a few ropes jumping between them, take out a batallion of soldiers on a pillar, another cutscene where you topple the pillar to the ground followed by taking on another batallion then over.
Literally in the time it takes you to read that, you'll complete it. Which for requiring about 20minutes to download here (and I have a fairly quick connection) seems overall disappointing.
Especially as you don't feel like you have real control in the combat at all.
As for the 360 issues ppl seem to have, while there's no way I can really defend them much (especially the DVD problem that happens to most of the older machines, that screams shades of PS2) on the mention of the 3 Red Lights, usually it occurs due to a heating problem. First revision of the console ran far to hot, without a decent enough cooling solution and people usually have them in quite hot rooms.
I've lost 2 PCs in the room I'm in due to cheap cooling solutions, without realising they were in trouble. I'd strongly recommend to anyone not using the newer machines that have this issue fixed, to buy a cooling helper (lots of them out there) .. especially if your home gets quite hot. The 3 Red Rings wasn't really that apparent as a major problem (1:1600 machines suffered from it until the start of this summer) and wasn't very common either. This summer however has been quite hot so it doesn't really surprise me that the number of machines this is happening to has increased.
What a few people don't realise is the original 3 Red Light problem, the code that was displayed before sitting there with just them lights on.. indicated on most machines that the CPU Fan has basically stopped working. The new one indicates that the Processors are literally buring themselves out. Microsoft have since change manufacturer (from IBM to AMD), they now have a much cooler running chip and a better heating solution in there.
Most 3 lights on the current released hardware can be fixed by just turning it off and leaving it for a few hours.
Microsofts Holiday update to Dashboard will be addressing this problem more so the console will turn itself off and remain off if possible damage can occur.