Well as for the last question, you will still get the step-up in graphics, but it won't be as clear and crisp on a regular TV as it would an HDTV. As for the widescreen question, it will automatically be sized to fit your screen whether it's a 4:3 or 16x9 widescreen. You won't get anything cut off. There have been some complaints, however, about people with regular TVs not being able to read some text on some of the PS3 games. So that might be a consideration for you if you only have a standard definition TV.
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