- Can I transfer files over the network between my PS3 and my computer
Generally speaking, no. However, there are a few ways to do it, but most of the methods involve homebrew software published by un-trusted third-party sources, and we would highly recommend for you to stay away from them. Until SONY or a big third party publisher releases something, transferring of files between your PC and your PS3 should be done with a USB storage device. or over Linux.
- Can I play my PS3 on a standard definition TV (SDTV)? Is it going to look horrible?
Yes, the PS3 supports both analog and digital output, the PS3 can be used with a SDTV through its "AV multiout" port. Multiple connectors can be attached to the PS3's AV multiout port, they include: composite (red, white, yellow), S-Video, SCART and component (red, blue, green, red and white). The US PS3s come with composite cables bundled in, and composite will give you the worst signal quality out of the bunch. Some SDTVs come with S-Video inputs, and you can get a S-Video to AV-Multiout cable and play your PS3 that way, S-video will offer a slightly better image than composite. SCART is used in most PAL regions, and will typically offer an image equivalent to that of a S-Video connection, finally for the EDTVs (Enhanced definition) that accepts component cables will offer the best quality next to HD. The image displayed on SDTVs will not be entirely horrible, although some loss will be present for detail, color, and resolution. However, it is hard to go back to SD when you have played the system on HD.
- Can I use my computer monitor as a display source for my PS3?
Yes, but only if your monitor is HDCP compliant. You can get a HDMI to DVI cable or a HDMI cable with a HDMI to DVI adapter to connect your monitor and the PS3. However, keep in mind that DVI do not carry audio signals, so the audio of the PS3 must be rerouted to an external speaker or receiver system from either the S/PDIF optical audio output or the AV multiout.