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The playback navigation functions are limited to chapter number entry, freeze-frame, next/prev chapter and an awkward forward/backward jog. The fan at the back of the machine is distracting unless you're used to watching movies on a PC.
And to compound all that, the best image you get out of it is all green. Basically the cheapest set-top player you can buy in the high-street has greater functional capability and yeilds a better viewing experience. Don't expect DVD wonders from the PS2. It'll get you by until you get a "real" player.
Fortunatley the launch games (generally they are a mixed bag for any format) make the whole PS2 experience worthwhile - and they are getting better. SSX, FIFA, DOA2, TTT and Kessen show off the machine really well. Others have been "OK" but seem to be lacking in quality, they don't feel like "next generation" games, F1, Fantavision.
But the second wave of games is set to blow everyone out of the water. Gran Turismo 3, Moto GP, Dropship, Ace Combat 4 look real special.
DVD playback is excellent and I can't complain.