With your PS3 you can play brilliant HD off of regular DVDs if you burn your finished HDV projects as m2t, mts or m2ts files. You're limited to short projects of under 20 min or so but it looks spectacular.
You don't even need a PC to do this. You could burn direct from a Sony SR AVCHD cam (SR1-12) to the Sony MC5 disc burner and create and AVCHD disc that will play in HD on your PS3 connected to an HDTV. Or you can do what I do, which is shoot with and HDV tape cam, edit in HD on the PC, then burn the finished project in one of the file types listed above to standard DVD and enjoy full HD glory from regular discs. And by shooting on tape you have the perfect long-term archival medium.
Your PS3 manual lists what file types the thing will play.
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