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1 - All PS1 downloadable games can be played on the PSP. Some games suchs as PixelJunk Monsters can also be played on PSP. Yes you can stream movies to your PSP using Remote Play. 2 - You can play DivX movies from an external FAT32 drive. If they are to pop up automatically on the PS3 they need to be under the right folder structure, I can't remember what this is but someone will tell you. If you can't see your movies you can just press Triangle and it brings up a display all option. 3 - No you can't upgrade the memory on a PS3. You can replace the internal HDD with another 2.5" SATA drive. You can use external drives as long as they are formated FAT32.CellAnimation
You sure about #3?
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