1. No, you will need to install the DMS3 explorer to your mem card and ten intsall the ps2reality player 1.50 to play those.
2. Yes you can play games online. You will have to disable the chip though to play online and it will also have to be an original. There are other ways to play back ups online but that is a whole different thread.
3. No you can't, its a PS2 not a PC. It only for installing games to the HDD so they run smoother.
4. no you will not be able to play SVCD's.
5. Again, it is a ps2 and not a PC. It is only for specific ps2 related applications.
6. Yes you can, but it will need to be partitioned in a certain way for the ps2 to recognize and read it correctly. HD loader will format it for you, and so will the DMS3 HDD format tool.
I hope that sheds some light on what you can really do with the chip. To find out all its capabilities go to http://dms3.com and read about them. They also have their own forum for more in-depth questions.
I do beleive I said MEM CARD in the post above. The program will be on your mem card and you will have to put your divx/xvid files on a disc in raw data form to play them.
