Hi,
I've had a PS2 for many years, and therefore got quite a few games, including ALL of the singstars. It's great fun with friends and family. Like you the missus loves the singstars.
Anyway, I recently bought a PS3 60GB UK PAL version from Ebay. There are loads for sale. I just watched about 30 of them for about a week, to see what prices they go for. On average they are selling for £400/£450. What with the blue-ray functionality, media streaming from Windoes Media 11, PS2 backwards compatibility (about 90% I believe), memory card slots in the front AND internet browsing in the living room etc etc. I had to have one.
We have tried about 3 of our PS2 singstars on it, and they've worked fine. When you put in a PS2 game, it senses it, and asks if you want to create a Virtual PS2 Memory Card on the PS3 hard-disk. That done you can play away. But what you can also do is transfer your PS2 game data to the PS3. What you do have to purchase though, and I have got one on order, is a PS2-to-PS3 memory card reader. This allows you to copy your old PS2 memory card data up to the PS3.
We've also bought the PS3 singstar game...I'm not keen on the songs, but there are about 20 decent ones in the Playstation Store which you can download for £0.99 each. Not done so yet, but will do.
AL