Kyle Orland from Joystiq cruised through the Sony PAL Backwards Compatibility web site here to crunch some figures. So far, 43.72% don’t work, 35.69% do work, and 20.59% work with issues (from minor to severe).
Read more here.
I expect future revisions of the firmware should bring that number up, but personally I think Sony should have stuck to including the hardware, worked on the emulation for a future version of the PlayStation 3 including the Cell 0.65 nm core shrink rather than trying to scramble to get it done now for the PAL launch.
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