I updated the firmware yesterday and had problems signing in to PSN. But today I could sign in.

Well that is the current model of the PS3 right now along with the 250GB. Unless you can get the previous models, it is better to stick with these new ones so that you can download games, demos, etc with the bigger harddrive.

I went there a few weeks ago. I wanted to buy a PS3, no stock same with The Gardens Branch, and they told me until end of April got stock. So when you wanted to buy did they renew their stock? Also Those people there blur blur one. Eg. They are selling the God Of War 3 there for RM200+ I think. Then I ask them how come your price different from your website? Then they corrected the price. Not sure if the price change or not. So different shop say different things. To answer your question no coz I only wanted to buy the console itself. I think this is some stupid policy they made up to force you to buy a game at the same time.

Depends on the game. Check at the back of the game case. Also when installing/ updating it will tell you how much space is needed/ being used.