@ joyson
in my opinion....go for PS2 right now.it is cheap console now.i think it's price is 5500-6000 and MMC cost below 500.so u r total cost is 6000-6300.
yes u can play divx movies using some tools.
new model PS2(i think SCPH 77004 available in market) is not compatiable to add hdd.
perhaps if u decided to buy xbox 360..... i don't recommend.because many peoples having troubles(3 ROD) with xbox 360(personally i faced



).so i don't recommend right now.just wait until 2008 the xbox 360 going to 65nm instead of 90nm.so it produce less heat... this will end all problems.
about PS3 i don't have...so don't comment anything but the price is 25000+
take wise decision...happy buying...and happy gaming.