Lyndon,
Thanks for the quick reply. I did both a default restore and then a full restore (format disk) and same problems with the Sony titles. I called Sony support and they said that the Firmware upgrade to the 2.10 (12/18/2007) has caused this problem on the 60 GB Playstation 3. Since my unit is out of warranty, then I will have to pay $150 for a replacement - OUTRAGEOUS!!!!
The only other option to fix this SOFTWARE problem is wait for the next update to see if it gets fixed. I think Sony needs to address this SOFTWARE problem and not SCREW the early adopters over by forcing them to pay for a new machine.
Sorry to vent, but this smells like a class action lawsuit coming.
Z