PS3 12 GB Upgrade help needed Urgent

I have recently (2 days back) purchased a PS3 12GB model, as i already have a spare 500 Gb HD and a HDD caddy with me Before buying, i have read all the things related to the upgradation of HD. I do not have any internet connection at my home althogh if required i can connect it to internet by Hotspot via my mobile (already did once). I know how to open the PS3 and install the HDD with help of a HDD caddy. My only question is what happens after installing the HD? i have read somewhere the HDD (which is installed) should be in a specific format i.e FAT32 is it necessary? if yes how can i do that as the HDD is internal one and i can't install back to my new laptop as it will void the warrenty (sold the old one while retaining the HDD)? i have also read that upon installing the HDD PS3 will ask to format it, is it so? if yes then i require a internet connection or not? i just have a saved game which i dont mind if get lost during the transition. Also want to know that when i first used PS3 it have asked me to update the software, someone can tell me what is the size of it as i am connecting it via Mobile Hotspot?

Help on above will be highly apperciated. Thank you in advance for anticipated response.

@gorangjoshi:

Just put in the new HDD, the PS3 will do the rest of the work.

Game update sizes vary, they can range from 1MB to 7GB

@GTR12:

Thanks for the reply. Well i have asked for the system update not for the game as my new console is asking for updation. I have come to know that i can download update in FAT32 formatted USB stick and through that i can update my PS3 offline. But my only question is that if i download the system software from US playstation site will it be compatible with my India PS3? Will region (NTSC & PAL) will come into the play or not. FYI India PS network is down for few days.

http://www.ign.com/boards/conversations/need-help.20295831/#message-2154541

@gorangjoshi:

India is on the Asia network, either download the firmware from HK (if India website is down) or use the Europe firmware, the US PSN website is extremely slow because theres a lot of people.