PS3 Backwards Compatibility Half-Assed?

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We've known about the PS3's upscaling problems for awhile now, but now some PS3 fanboy is complaining his new console does a crap job playing his PS1 and PS2 games. Like everything on YouTube, the video he made is a little too choppy to notice the jaggies he talks about (although some contrast ratio issues are noticeable), but does anyone else think their old games look that bad on the PS3?

Clip: PS3 BC Issues Popping Up [Kotaku]