Yep, you will have an increasing amount of trouble playing bluray movies unless you update the system. If you go to a best buy or similar store, a lot of times they will have big signs up by the bluray players saying how they need to be updated about every 6 months for this.
I bought a Disney BluRay Santa Buddies and put it in my PS3 80gb CECHL01 and a message came up something about the encription and I needed to update something. It also came w/ a DVD so we watched that. What do I need to do? Do I need a code or something? I've never updated my firmware. I'm from the school of thought that if it works or isn't broken don't update the bios, etc. Is this a problem I'm going to have with more BDs?

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