Ok, so I finally got around to changing out the 80GB hard drive on my PS3 and upgrading it to a 250GB. Long story short, this was the EASIEST hardware changeout I've ever done (and I've been building/repairing computers since 2000).

Anyway, it basically involves removing one screw and sliding the HDD tray to the right and out of the PS3. After that, remove 4 screws and pop in the new HDD. The key part to remember is to do a backup of your files prior to. To be honest, this is what gave me the most grief (until I realized that I was using a bad HDD to do the backup).

In short, there's no reason you shouldn't upgrade your hard drive if you have an old model PS3 (i.e. prior to the slim line).

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-Shoukhan