I'll give another vote for Suikoden III--I enjoyed that game quite a bit. I would make sure you actually enjoy console-style RPGs before you amass too many of them, though.
No, if you buy component cables the PS2 will output movies in 480p. 720p/1080i movies are Blu-Ray and HD-DVD and the PS2 doesn't upconvert (and even if it did it wouldn't be able to through components).
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