http://www.joystiq.com/2007/03/07/playstation-home-the-free-virtual-world-of-playstation-3/
Looks like a cross between second life and the sims to me.
As for integration with music and content providers that might be fun, but I hope you don't HAVE to access it through the 3d interface as I think it is the least efficent way to go about that kind of thing.
Fileplanet also has a vid on this one. Different concept on a chat room system, but could be interesting setting. Although Sony doesn't really do the online thing that well yet, so can already see potential problems with the system.