The XRGB-3 is a £200+ scaler, of course it's going to look better; but I disagree that the PS3 is horrible. With the upscaling and smoothing settings turned off it looks on par if not better than my PS1 does on my 50" Plasma (both being upscaled by my Onkyo AVR).
Originally Posted by Gradius
As far as the colours, that's probably because the PS1/PS2 emulators don't take any notice of the RGB Full Range (HDMI) option in Display Settings, hence it's going to look a bit poor if you're viewing it on a screen that only supports 0-255. My LCD monitor allows me to switch the HDMI input to 16-235, you might want to see if yours has a similar option.
 Install(s) Done Since 6th December 2010