After reading several step by step instructions on the process of changing out the hard drive on my PS3 I decided to give it a shot. I just purchased a brand new 250gb PS3 compatible HDD off eBay for (get this) $88 including shipping :D . Now if I hadn't had to get a usb external source to back it up on I would have been that much better off but oh well I can get more use from that other than just with my PS3. When it arrives I'll post how my experience with this whole thing went, I was just pretty pumped about doing it and couldn't wait. For anyone looking for instructions on this process here are some links below plus your PS3 manual should also include instructions on swapping the HDD out (mine does).

http://www.1up.com/do/blogEntry?bId=8235228&publicUserId=5746297 this one is my favorite.

http://www.gamespot.com/features/6176090/index.html?cpage=10 and ofcourse this is gamespots article on the subject.