so you got the "instal package" option in the ps3 but just can't make the ps3 recognize your external drive? if this is the case, make sure your external storage is formatted in fat32 and not ntfs. if you can get the install package to show up, make sure to power the ps3 properly. Power the ps3 then press and hold the eject instantly after that. you shouldn't hear any beep. if you hear two beeps after pressing eject, you did it wrong.