At the time I signed up it would expire 30 days exactly from the date I signed up. At some point if you do not get the welcome back items they will be lost to you, however if you signed up next week that is when your 30 days begins.
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Downloads are sold they are not free and the Playstation Downloads that are free from the Playstation Plus are not free they require membership in Playstation Plus and expire if your Playstation Plus membership expires.
The Playstation Store is the only authorized download site for the PS3 and they rarely have free games except demos. While Playstation Plus members have free games it is with a paid membership and the games expire with the membership.
No it is not free to download PS2 games unto a PS3. Most PS3 can not even play PS2 games but even the old 4 USB Port PS3s that can play the PS2 games can not download them for free. Even the old PS1 games that the PS3 can play are sold at the Playstation Store. Sometimes Playstation Plus customers are offered free games that expire with there Playstation Plus membership
Updates and patches are downloaded from the PlayStation network. The PS3 system will automatically update when a new version comes out. Game patches will download when you launch the game, if you have PlayStation Plus your PS3 can be set to automaticly check for patches for games you own and download them in the background.
Playstation Plus does not have anything to do with hacking on the PS3 and is a Playstation Network premium service