yes it does have a hard drive (which is fully upgradable with any 2.5" SATA drive, which currently go up to 250GB) and yes you can play divx thanks to a recent firmware update
i have my entire collection of music and movies saved onto my 160GB hard drive, really is convenient
also, if you have a PSP, you can use that as a sort of remote. you can turn on your PS3 with your PSP ANYWHERE in the world and access your media. (lets say your at a friends house and you wanna show him a video thats on your ps3, you can do so on your PSP using remote play)
i have my entire collection of music and movies saved onto my 160GB hard drive, really is convenient
also, if you have a PSP, you can use that as a sort of remote. you can turn on your PS3 with your PSP ANYWHERE in the world and access your media. (lets say your at a friends house and you wanna show him a video thats on your ps3, you can do so on your PSP using remote play)