I wonder to hear that the US PS3 does not playing PAL. The european PS3 plays NTSC fine, the only problems are the region coded DVDs, but for that I just do an 1:1 otr a downshrink to DVD5 for my private usage from my own DVDs without region coding...
Have you ever tried some Region codefree PAL disc, if its just the region coding prob?
Edit: I just read some forums, to find that it is impossible fore NTSC PS3 to watch PAL DVDs. O.o
The Asian PS3 is stated to have Firmware allowing watching PAL...