PS3 ISO backup playable thanks to exploit?

Can a backup be played on the PS3? Yes, says Paradox, an Internet release group. Apparently, there's an exploit. Here's what's making the rounds on the Internet:

| cOMPANY : SCEI | rELEASE DATE : 27 Dec 2006 |
| sYSTEM : PlayStation 3 | sIZE : 120 x 100mb |
| tYPE : Racing | vIDEO MODE : NTSC/JAP |
| sUPPLIER : Huey Lewis | cRACKER : Wireless B/G? |
| mEDIA : BLU-RAY | pLAYABLE : Yes they are |

| sPECIAL nOTE: |
| |
| Happy new year to all members who helped in the past and present! |
| And a question to all, is there a bug in the system software from |
| the playStation 3(R) Yes there is Nothing to add more.. |

What does this mean? Paradox has released a game image (ISO) of Motorstorm (Japanese) and in the NFO file, they say the game image is playable. And that's not the only thing that's making the hacks-and-exploits community smile: earlier, Paradox also said that the first sectors from a PS3 image (sector 0 to 20) are special and may be the decryption keys for the executables...