just a little update. installed my new hard drive without issue, but when i switched my ps3 (40Gb) on i was expecting the system to format the drive and off i go. but instead i got a notice saying system cannot be started, insert media that contains data of version 2.36.
following instruction from the manual, i had to download the lastest firmware via my pc, burn it to disk and pop it in the ps3. which i couldnt manage to do (because im stupid) even with nero. so ive had to buy a usb flash drive just to install the update.
everything seems to working fine now, but im a little annoyed. Ive bought a WD Scorpio 320GB sata drive, and i know the ps3 will only recognise 290GB or so, but i only had around 260GB available when i checked. no games or videos or saved files. ive lost 30Gb somewhere.
anyway, just to confirm the 40gb PS3's are upgradeable