For those of you that want to upgrade your PS3 HDD, BG Gaming posted a nice little guide
“In the XMB go to Settings > System Settings > Backup and backup your current drive to an external USB drive. I suggest making your backup as lean as possible. Delete any game cache files (seeing as they usually weigh in at about 5 GB apiece) and any demos or other items you can always re-download later. Once you run through the backup process you are ready to go to work. My biggest piece of advice is to replace your hard drive before it reaches the limit, which was not the case for me.”
At some point I am going to have to get brave and try this because my 40GB HDD is rapidly filling up.