Update so you know, bought a 40GB this weekend, and there are a few untruths on this thread and some correct information so to clarify:-
1. It does have WI-FI built in, and also has the option to wire in via a network cable (not supplied)
2. It does bluetooth
3. It isn't backward compatible with PS2 games (but that doesn't really bother me still have ps2 anyway and dont really see this as deal breaker anyway )
4. Obviously has a smaller hard drive 40GB rather than 60GB
5. You still get free access to on line gaming.
6. It up-scales your standard definition Dvds (brilliant feature), the 60GB does this also, but requires the latest update Ver 2.0
7. No card reader, but then again you can connect your camera or external card reader to it anyway.
8. Only 2 usb ports, really don't see the problem with this, you have wireless bluetooth controllers anyway
So i think its still a worthwhile purchase

Oh and no ring of death like other consoles i could mention.

Jas