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is it the firmware? Or the card broken like other people stated. Or maybe the port could be broken as well.
If  it's firmware thats's annoying by sony

and if it is. maybe you can get this

http://cgi.ebay.com/SDHC-SD-MMC-memory-card-USB-2-0-reader-TF-SD-adapter-/140376343362?pt=PCC_Drives_Storage_Internal&hash=item20af150342
You can get a dongle that plugs and SD card into the dongle that has a usb port to stick in the ps3.
I'd guess it would work like a USB thumb drive. I have a produo dongle that I used to see pictures from my sony camera... haven't tried it since the update though.