I have Yellow Dog linux installed on my PS3, and I'm getting used to the interface. After I'm more used to the way linux works, I'll probably dual-boot Windows and Linux.
I only have an SDTV that I play my PS3 on, but the graphics are great anyway. Of course it would be better on an HDTV, and I intend to get one eventually, but for now I'd deffinately reccomend you to get a PS3 even if you only have an SDTV.
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