Dogs Rule on 18 September 2008
Standby mode (red light) does not have a download mode. Also you do not need to sign into the PSN to restart a download from where you left off when you put your PS3 into Standby mode. In fact you can sign in, start a download and immediately sign out and it will keep downloading.
If you want to set your PS3 to shutdown around the time your download is done, just use Folding@home and it's automatic shutdown feature. You might as well be folding if you are just leaving your PS3 in the XMB while you download very large files. Downloads continue while Folding.
