Sony has released a new firmware patch for the PlayStation Network which brings it up to version 2.17. This small update improves the operating stability of several PlayStation 3 titles. You'll be prompted to download the system update when you login to the network.
According to the, the latest firmware patch also allows users to install PlayStation 2 games to the hard drive. We've contacted Sony to confirm this.
Update 2: Seems that the Japanese website is actually detailing information about compatibility with Final Fantasy XI, which required a HDD for the PS2. So, any games that require HDD installs for the PS2 will now work on the PS3.
PS3 Firmware Update (v2.17) UPDATE
13 March 2008 | By Kres