Originally Posted by TK421
I've got a 160gb one for my pc, I could use that. I connected it to the PS3 one time but it didn't seem to recognise it, was seeing if I could play files from it on the PS3.
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Your USB drive needs to be formatted as FAT32 TK, not NTFS (which is the Windows XP default).
I had the same problem, this helped me out hugely (especially the bit about downloading SwissKnife to format my usb drive):
USB Hard Drive Issues? - PS3 - Gaming - Discussion Forum /// Eurogamer