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60gb is the safest bet.
as far as backwards compatibility (BC), all 20gb, 60gb, and 80gb are backwards compatible.
the 20 and 60 are for sure BC with all ps1 and ps2 games, but with the 80gb, it's more like the xbox and deals with an emulator processor...meaning that you must download the lastest software to be able to play most games on the ps1 and ps2, and not all games will work on it.
sony just released a new 40gb...only plays ps3 games, movies (not sure about dvds) and perhaps ps1 games...but ps2 games are definitely out of the question...that's why it's priced so cheap.
if you have a ps1 or ps2 game that you want to play on your ps3 but just not sure about it, just go to the sony website and they have a page where you can check it it'll work or not..
hope that helps.
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