PART I (Changing your USB format):
TTG
Note: Make a backup of your USB or external because the files will be deleted
1) Get your USB flash drive (or external!) and plug it in your computer!
2) Go to START --> RUN --> and then type in "diskmgmt.msc" (WITHOUT THE QUOTES) and then press enter
3) Disk Management should come up.
6) Make sure the drive type is BASIC, if not, then it may not work, I am unsure.
7) Press your M: drive in the Disk Management window.
FOLLOW MY DIRECTIONS CAREFULLY HERE, OR YOU MAY MESS UP YOUR COMPUTER
On the bottom, where you see the words "Healthy" the drive letters, and such.
9) LOOK for your M: drive in the window. There should be a blue line through it (and it should probably be just one long box, not 3 boxes as opposed to C
10) Right-click it and press Delete Partition.
11) Now click on it AGAIN and press New Partition.
12) Press next. Select Primary Partition and press next. Enter max size and press next.
13) Click on Assign the following drive letter and then choose drive letter M. Click next.
14) Select do not format this partition and press next.
15) Press finish.

Extract it to EXACTLY C:/ (The root of your C drive)

17) Press START --> RUN --> type in "cmd" (without quotes) and press enter
18) Type in "CD /D c:" in the black window that appeared (again, without quotes)
19) Then type in "fat32format m:" (without quotes)
20) It should be successful in less than a second.
21) Plug it in the PS3 and see if the PS3 detects it.
22) If so, CONGRATZ! You now have a fat32 usb/external which you can put in your ps3!



PART II (CONVERSION):
1) Download your 1080p bluray movie (try to get the movies that are compressed to around 10gb, cause you don't want a 55gb movie on your ps3)
NOTE: Make sure the movie will come out as .mkv or else it will not work
2) Download mkv2vob (search it on Google, version 2.2.4)
3) This one is obvious, extract the movie you downloaded. (Usually, it'll come out with another bunch of .rar files so you'll have to extract again right after)
4) Install and Open mkv2vob
5) Go to the Configuration tab and change the following:
a) Video Transcoding: Automatic
B) Output File Extension: avi
c) File Splitting: fat32 (4gb)
6) Go back to the "ADD FILE" tab and press Choose from the Source File.
7) Add in the .mkv file.
Press Choose from the Destination Directory and choose wherever you want the file to end up at (it will end up in splits, will explain later)
9) Press Add File and wait. It may take a while depending on how big the file is and how good your computer is.
10) A few windows will pop up now and then, DO NOT TOUCH THEM. I also highly advise you do not go on the internet or do something that costs a lot of RAM or you may mess up your video
11) When it is done, you should end up with 3-4 .avi files split into 4GB each. The reason for this is because FAT32 formatted drives can only hold 4GB no matter how much it CLAIMS it can hold. And the PS3 can only read FAT32 drives. So Sony got smart with us, but we can still beat them

PART III (Adding files to the PS3):
1) With your USB drive/external connected to your computer. Make 2 folders, music and video.
2) Inside video, drag and drop ONE of the newly created .avi files.
3) When it is done copying, unplug your USB/external and put it into the PS3.
4) Turn on the PS3 and go to the video column. Your USB/external should show up there with the name
5) Press TRIANGLE on the USB/external, and press Display All.
6) Search for your .avi file and press copy.
7) Delete the .avi file from the USB/External.
Go back to the computer and repeat the process until all your files are inside the PS3