I don't have time to tell my entire story, that would take 5 posts, but basically I am well aware of the backup utility's limitations, but I thought when restoring to a different ps3, all my ps2/ps1 would at least be restored. I restored my new ps3 last night, but my ps1/ps2 saves did not return. Was I mistaken?
From Sony's knowledge centre: The following copy-protected content will not be transferable:
Digital Right Management (DRM) PlayStation® format software game data PlayStation®2 format software game data PlayStation®3 format software Game Save Data flagged as unexportable Trophy data, trophy data is saved onto your Sony Entertainment Network account
So, yeah, PS2 and PS1 saves are not backed up via the utility.
Most things do not actually transfer over, despite what people tend to claim, because it is a new system. The backup is meant more for replacing your HDD, the transfer function is what they intended for a new console (yes, not very bright, but that's how it is)
PSN ID: RyuuHou24 "I never said that....and even if I said it, I never said it" - Dr Peter Venkman RGB