new red light means on the PS3 controller from Sony*, but what we can confirm is that the new 80GB PS3 will have limited backwards compatibility. Clearly stated on the box, the system has apparently gotten rid of the chip previously used for US backwards compatibility and switched over to the European software version.
The box states: "This product has limited backwards compatibility with PlayStation and PlayStation 2 format software ... visit www.us.playstation.com for system software update." We're attempting to find out if the new 60GB versions rolling off the assembly line will also switch over to the BC software. So, if you're really into your old PS and PS2 games, might want to check and see if they are compatible with the software or get a system currently available before the switch.
*Update: From Dave Karraker, Sr. Director, Corporate Communications regarding the red light: "It is just a lighting trick. Nothing different or new about it."