I just bought a PS3 as a birthday present to myself
I went to my local Blockbuster yesterday and rented three BluRay disks, Happy Feet, Apocalypto and Aeon Flux. I popped in Happy Feet last night and my jaw about hit the floor 
The detail and color was amazing. I did not expect this big of a difference between BluRay and my Oppo. And this is with a 50" Panny plasma that is 720p.
Call me impressed!
Congrats...and don't forget you get 5 free movies from a select group with your purchase.
What you want for firmware upgrades is 1.82 or better for much improved sd dvd playback...but it sounds like your PS3 may already have it.
Fry's seems to be the cheapest place to buy BD movies...but unfortunately we don't have them in my area..
They have..
Seven years in Tibet
Black Hawk Down
Hellboy
Layer Cake
Kun Fu Hustle
Memento
Tears of the Sun
and 13 other titles for 12.50 each on sale.
I believe everyone of the titles I mentioned look phenomenal and include uncompressed linear PCM tracks which you can only get via hdmi from the PS3 in multi channel.
The PCM audio tracks will probably suprise you as much as the P/Q improvement.