http://www.siemensjobcam.com/2-5-mobile-hard-drive/

How to Format New Ps3 HDD?
I want to upgrade my ps3′s hard drive from the 80 gb to a 500gb HDD. I’ve read that you have to format to fat32. can anyone explain to me what this is and how to do it. I really don’t know anything about this so the more explanation the better. The hard drive i want to get is this. Seagate Momentus 5400.6 ST9500325AS Mobile Hard Drive – 500GB, 2.5″, 5400RPM, 8MB, SATA-300, OEM Thanks in advance
You won’t have to format the drive yourself, when you start up the ps3 with the new drive it will format it by itself, after asking you.
What you probably read is that when you’re backing up your old ps3 data, to transfer it to an external hard drive, you need to make sure that the external hard drive is formatted in FAT32 or the ps3 won’t be able to read from it.
OMATA 2.5″ SATA 320G USB 2.0 mobile hard disk External Enclosure OT-820AC – dinodirect