No an update to the software would not allow it to play PS2 games according to Sony and neither would a change to the hardware
No it is a PS2 and Xbox 360 Game
You don't. The 40 GB PS3 is not one of the PS3 models with Backward Compatibility. Sony claims that there is not anything you can do to allow it to play PS2 games. see related link
ps3 80 gb.
Yes.
ofcouse!
no
it cost $400.
no the PS3 can not go backward to an earlier configuration after an update like you can a pc
More memory, that's all.
No it can not
Yes.
40 gigabytes