After recieving a number of "yes you can" "No you can't" replies whilst on my quest to hook up my PS3 to my LCD monitor, I went forth to investigate and can confirm it can be done and very easily at that.
It is pretty darn-gawd simple, all you need to do is buy a HDMI to DVI cable, I found one at a gaming shop in Jhb which had them for R190 which is very reasonable.
You then need to sort our your sound. If you are wanting to use headphones you will need a 2 female RCA in to 1 female headphone jack. Like so.
If you plan on using a sound system you can either plug the RCA's from your PS3 directly into the system if it supports this, or you will need the following converter which will convert the 2 RCA's from the PS3 into female jacks where you can plug in normal speaker jacks.
And thats it!