Other info about the two different models...

"During their conference this evening, Sony mentioned they would be releasing two PlayStation 3 hardware packages this November. They emphasized the logical differences between the hard drives, but failed to mention the other features that drop if consumers pick up the $499 model over the more expensive $599 machine.
As it turns out, a little examining of Sony's announcement press release reveals the $499 model will lack support for Memory Sticks, SD and Compact Flash cards, no built-in Wi-Fi and will surprisingly have the HDMI output removed (necessary for achieving the much bragged about 1080p screen resolution)."