A few of the goons have been asking me about internal and external hard drives. The external I use is the Western Digital My Book 500GB. The cool thing about this one is that it uses the Fat32 format out the box, that’s what the '3 uses so you don’t have to reformat it. It's USB 2.0 compatible for faster transfer speed and it looks like the PS3 with the glossy black finish and the blue light.
http://www.amazon.com/Western-Digital-500-Book-Essential/dp/B000XRK3LG/ref=dp_ob_title_ce
Now if you wanna achieve big boy status and put your '3 on coke like I'm about to do, then your gonna want one of these. The Samsung Spinpoint M60S is the only 500GB internal on the market that fits the '3 right now! CRAZY!!! The '3 uses laptop hdd's so swapping it out takes less than 10 minutes. So toss that pussy 60GB in the garbage and put that 500GB beast up in there!
http://www.amazon.com/Samsung-SpinPoint-M60S-HM500LI-internal/dp/B001BSIXT0/ref=sr_1_2?ie=UTF8&s=electronics&qid=1222970785&sr=1-2
http://www.gamepro.com/article/features/206951/how-to-supercharge-your-ps3/