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For those who dont want to crack open their ps3's here is a useful guid i found to adding an external hard drive.
Here is the original site: http://www.wikihow.com/Add-an-External-Hard-Drive-to-a-PlayStation-3
"FAT32" has a limit of 4Gigs per files, which means some high quality HD movies might have to be split into smaller files, and that makes it less than ideal for some HD content.
If you have experience with Linux, then format it as a EXT3 Partition using Partition Magic or the Hard Drive formatting tool of your preference.
The Following instructions are for FAT32 formatting only:
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