Fedora 8 runs in 1080p on a PS3.

There’s a picture (obviously not a screenshot) here

It makes a dreadful workstation as it only has 192Mb RAM. However I’ll strip it down to bare metal with Cell development kit and a bare(ish) Xorg. It would make my job a lot easier if Sony relaxed the restrictions on Linux access to the RSX unit (the PS3′s graphics card).
My plan over summer, to get the University of Brighton games development lab up and running, is to turn the Gen1 PS3 into a server providing DHCP, LDAP authentication, NFS and Cobbler. Cobbler is particularly nice, it’s an automagic provisioning service for boxes. It should make provisioning of the 20 PS3s and associated workstations much easier. Furthermore, it’ll allow me to manage and maintain the software over time. So I may have a PS3-bare-metal config and an Intel-core-games-workstation config. It’s much more work than I want to do, but in the long run it’s easier than depending on the existing services. Essentially, to get one lab up and running I’ll have to fork most of the network services.
In the meantime I’ve to finish a paper for Diagrams 2008.