IT"S EASY.
just get a portable hard drive (or borrow one from work), convert it to FAT32 if it isn't already, and upload all of your PS3 data to it. once its done, unscrew the one screw that holds in your current harddrive, and insert the new one. all the PS3 takes is a std 2.5' notebook hard drive.
I was going to convert mine to the new 320GB drive, but realized that I would never need that much space. I'm going with the western Digital 250GB scorpio (5400 RPM) instead. Even with that much space, I'll never fill it all up. Only reason I'm going for one that big is because I plan on keeping my PS3 for many years to come.
On a side note, I don't reccomend that anyone purchases an external hard drive for their PS3. Even if you are just planning on using it once, it's probablyeasier to find someone who is willing to let you borrow theirs in order to do the deed.
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