Originally Posted by dbachman
Do you think that is something a firmware update could fix or is it a hardware limitation?
I expect it is a hardware limitation. There are of course video cards designed for PCs with multiple monitor support, but even there, I'm not convinced that you could have the same picture displayed on 2 monitors with different resolutions. In any case, unless the PS3 GPU hardware was designed to drive 2 separate outputs simultaneously with the same picture at different resolutions, then a FW update could not fix it.
Hmmm...now that I think about it, there is one particular circumstance where you can get both HDMI video and standard def composite or component. If you put your finger on the power on touch sensor and hold it there until you hear the 2 beeps (maybe different on the slim), the PS3 will power up and output standard def 480p to HDMI and standard def 480i via composite and component, all simultaneously. Unfortunately, aside from being standard def, you're also stuck on a screen asking you to configure video output at the end of which, only one video output will be active, either HDMI at full HD resolution, or component HD, or composite SD.
So, technically the GPU can output simultaneously to 2 different monitors, though they're both at the same resolution and it can only do this in a special config mode.