Hey dtel, I cant really help you as I am not really a gamer.. but I am unsure if you can play ps2 games on ps3 console, hopefully someone else can confirm either way, as for the memory capacity, if you require more memory you can connect external hard drive via usb, and as for the differences in models and what they offer, if you connect ps3 via internet you can do a system update to update to current version. Many of us here on the forums have ps3 and hopefully they would be more of a help than I am..