Read your own link. Backwards compatibility got a whole lot better after that firmware. They now upscale all games to make them looks as decent as possible on an HDTV. Also, for those who don't know, 40 gig= no BC, 80 gig= good amount of BC but some issues can arise, 60 gig= god of BC.
Also, what games are you having trouble reading text, and what size TV do you have?
I have a 60 gb, and since I have owned my PS3, I played 2 PS2 games. They both work fine.
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