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Usul said:
So I guess you can erase the install files but keep the save files from all your games just in case you wanna play them again or not lost the trophies you got.

The trophies are saved on the server connected to your PSN ID, so even if you reformat your PS3 and buy a new one, you still won't lose your trophies.

I'd personally get the 160GB, great game and I already filled up my 80GB, but then again I have a whole bunch of music and movies there too.