The latest PlayStation 3 2.4x firmware update added more than just the long-awaited in-game XMB access. Upscaling from Blu-ray discs is now supported, allowing the system to deinterlace 1080i to 1080p on its own, if you have a homemade BDAV formatted disc recorded in less-than-full HD. Retail Blu-ray flicks are BDMV formatted, so for certain discs not in 1080p (mostly concerts), they'll still be played only in their native resolution. Also included is upscaling, frame noise reduction and block noise reduction for video played off the PS3 HDD or external storage media, and DTS-ES and DTS 96/24 compatibility on Blu-ray discs. AVSForum posters are also reporting some DTS-HD 7.1 discs now map to their speakers properly, but as we've seen, your experience may vary.

Read - PS3 2.41 System Update
Read - PS3 Firmware 2.4x- Master Thread

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PS3 2.40 / 2.41 update adds Blu-ray upscaling, audio playback tweaks