It's too soon to tell how the PS3 will perform with DVD and CD playback. There are some hints that it's going to be a really good Blu-ray player, but there's nothing first-hand to back that up and there's even less information about DVD and CD. CD performance would probably be fine. (Interesting observation: Sony's Blu-ray player will not support CD playback at all, but the PS3 will since it is backward compatible with PS1 games.) Upscaling DVD performance is more of a mystery. I tend to suspect that an Oppo would do a better job with DVD's, but as with any upscaling DVD discussion you also have to consider the display - if the TV has good scaling capabilities and the PS3 can be set to output 480i via HDMI, it might still work out well.