Just the games. There's a setting under "Game Settings" for PS/PS2 Upscaler and PS/PS2 Smoothing.
If your display does great job at upscaling like mine (DLP), the new upscaling features on the PS3 will only introduce excess noise in the picture. I have it turned off.
If your display does great job at upscaling like mine (DLP), the new upscaling features on the PS3 will only introduce excess noise in the picture. I have it turned off.