Yeah a memory stick or just go to Settings and c\hit the System Update. It will dload and install right then and there. Otherwise you need to create a correct path by naming a folder and such on the disk with the .pup file in it to install from disks.
dvd backups, dvd-+r will upscale via component, so do games, like Battlefield Modern Combat. For copyrighted material and DVDROM you need HDMI. It is an HDCP issue. My bought copy of LOFTR Two Towers plays in 480p via component. The backup of the movie upscales to 1080i, as well as my self encoded/authored dvd's of anime I made. In settings set the Blue Ray/DVD and the Game Upscaling option to Full Sceen. That's all you need to do. In a game that supports Progressive Scan, do not turn this option on in the In Game Settings of the software as it will override the PS3 hardware upscaler. Make sure your Video settings in the PS3 are checked off compared to what your tv can display.
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