I have an Australian/Euro SCPH-39002 PS2 with a DMS3 modchip installed. I have yet to find a PS, PS2 or DVD media that it can't run. It runs my original import R2 DVDs, PS and PS2 backups, JP original games etc. I highly recommend this method of modding.
Using a HD sounds intriguing because I use my PS2 for everything! I don't own a stand alone DVD player and I'm worried I'll wear my PS2 out soon enough with all this talk about shoddy manufacturing
Andy, it is true that PS2 online will block you if you have a modchip installed (It can detect it in your system). However the DMS3 is so awesome it even has a stealth mode to avoid this detection when playing online (the system will revert to its original capabilities). The stealth feature is also useful when installing utilitilies like the DVD player disc etc. which won't install on a normal modded system.
Wait, you have a PAL PS2, and it plays NTSC games/DVDs? I also have a DMS3, but an NTSC unit... I wonder if I can play PAL games? Lame as it sounds, I kind of wanted the Knight Rider games for PS2...
You can!! My friend brought home a Japanese PS2 from there, modded it and now he can play domestic games here. Keep in mind that you're monitor has to be multi system . My PAL PS2 does put out an NTSC signal after being modded but my TV is also multisystem and accepts it unlike a lot of older TVs here.