I'll second that, this is great news. SC was one of my fave Dreamcast games and since it's been backwards compatible, Soul Calibur 2 has been in the 360 a fair bit too.
Can't say I'm that fussed about Ivy's boob job, but since the cleavage got more visible in SC2 I guess this was inevitable. To be honest as long as the fighting is good (which is something I think SC does very well), I don't care. Sometime less is more though. There's always Dead Or Alive if you're after that sort of stuff anyway.
Can't wait to see the characters all next (this?) gen now. I'm sure they'll look great anyway.