Blu-Ray discs cost $20.00 a piece and I have no clue what a Blu-ray burner would cost, but $300.00 plus would be my guess. Bottomline, you need to dump these games onto the HD and play them with some kind of HD-loader. Even for that, you'll need the 60GB hard drive, since Blue-ray holds up to 50 Gigs. In the end, you'll probably need 2 hard drives.
What I'm saying, basically, is forget about a ps3 mod chip. You'd be better off just buying the games. And, whether they'll admit it or not, this is the main reason why Sony went with Blu-ray in the first place.
Still, I gotta believe that the hard drive thing will be cracked eventually. Sony should have kept their harddrives under 50GB. Oh well. Good for us. Bad for them.