For several months I have been scanning the web in my spare time trying to find the best solution to upgrading my PS3 hard drive. My first thoughts were to get a large USB memory stick for backups and go from there. But, then I spotted the Hitachi 500Gb drive for less than a 32Gb memory stick. No contest. Shifted my essential files from my PS3 to my laptop with a 256MB usb stick, put the big files on my PSP memory cards (the advantage of having the older fully specced PS3) and swapped out the drives. The only issue was the one that kept coming up in reviews and advice pages, the screws on the old drive were tricky to remove without stripping them. Managed it and everything else was just a breeze. Pop in new drive, PS3 sets up new drive, PS3 takes system space, I sit with big grin on face reading capacity as 418/465. Even with the large space overheads I'm looking at SEVEN times the capacity of my old drive and no installation drama. I kept a copy of the OS on usb just in case, but it wasn't needed.
I bought an IOMAX enclosure to use my old PS3 drive with and now am in the intoxicating position of more disk space than I know what to do with in my PS3 and an enormously handy and useful portable 60Gb of re-formatted FAT32 storage. One of the most satisfying computer related purchases I've made in 25 years.