Developing for the Playstation 2?

Kentai asks: "Im thinking of building my final year CS project around developing a piece of software for the Playstation 2 and I am wondering what various pitfalls I should expect. Bringing our own software to the living room on nice hardware seems like a whole new computer medium that would be fun to exploit. Problems I am expecting so far include: issues like obtaining a compiler (pretty important), the whole Playstation 2 CDR issue and legal issues. What compilers can one use to develop PS2 software, and how much does each solution cost? Also, has anyone had any luck or placed any hope on a Java VM for this platform?"