This is why I have one customized PS3 and before anyone claims piracy I did this legally, and yes I know what i'm doing and no I didn't use a payload to allow backups. Anyway, I have allot of NTSC ps1 originals so it was worth sacrificing 1 ps3. Imho sony did a good job at region free ps3 games though it would have been so simple to do the same for ps1 and ps2.
Yoda, if you have a codebreaker or gameshark or any one of those cheat cd's, you can play your PAL game on your ntsc PS2. This is how I used to do it and it worked fine, using component cables displayed everything fine.