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I've heard that Even though the PS3 is region free for PS3 games the Australian PAL version can still only play PAL PS1 and PS2 games?
Good luck with your sale, for a long time I wanted one of the 60GB models. I'll probably ends up buying a slim in the near future though also, since I'm just waiting on my $50 slim PS2 to arrive in the mail (never owned a PS2 before!).
PS3 games are region free, PS1/2 games are not, so yes they'll need to match your region to play.