Recently there have been tons of reports on the backwards compatibility of PS2 and PS1 games on the PS3 looking very, "jaggy". The following video shows the issue:
http://www.joystiq.com/2006/12/13/ps2-g ... like-crap/
At first I thought it was just some 360 fanboy trolling on the PS3. However, the following thread on the official PlayStation web site has me convinced this is indeed a real issue:
Official Backward Compatibility Bug Thread
It appears that it doesn't happen on all titles, specifically ones that support 480p.
Hopefully Sony will provide a quick solution for this issue as it would frustrate the heck out of me.
--Raz.