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Not necessarily, but to get the best quality, an HD or an LCD screen TV are some of your best options.
But that is if you have the money for it, otherwise your CRT television set will be able to handle it with decent quality.
Well it wont LOOK as good you wnt get the FULL ps3 experience and depending on how old your tv is sometinmes in fast-paced games you may notice a game lag feor a second or 2. somtimes the words get a little blurry (so ive read) but yeah, Heres a pic for more info-
Shit, $400 isn't a lot to spend on what the PS3 offers. HD isn't needed, but is it awesome? Hell yes. Big screen HD for me. I don't have any complaints :3
I plan to get an HD, but for awhile I been playing it on a 420p system and it looks nice on it. Of course getting an HD will increase the eye orgasim, but it isn't entirely needed.