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ps3-sales! said:
It depends on the game. Most games nowadays have optional or no installs at all. Others have small mandatory installs. And some (MGS4) have very lengthy installs.
It can add up pretty quickly so I recommend you get a new HDD. It'll be completely worth it. Just make sure it's a 2.5 inch Sata HDD, preferably by Seagate.

Oh wow, you can put any 2.5 inch HDD on there? I just have a spare one lying around from my last PC build. Does the PS3 have it's own proprietory  format or can I just keep it as FAT32?