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@MasterVG71782 & Draven26: That's the exact HDD that I would like to use for my upgrade too. I've read lots of positive comments from people using it to upgrade their PS3, but there are a few comments like this:

"Not recommended for PS3

Pros: 500GB, cheap.

Cons: Despite what other people have said I would not recommend this drive for a PS3. The drive's firmware will aggressively park the heads and spin down the drive after only 4 seconds of inactivity. Under Windows, the power management software keeps this under control, but when using the drive in the PS3 or on a Mac, it is a real problem. If you leave the PS3 alone for more than a few seconds, the drive goes to sleep and the subsequent spin up delay causes the PS3 to hang for 5-10 seconds. This happens in the XMB all the time but also during some games. Not only is this incredibly annoying but parking the head that frequently can wear out the mechanism and cause the drive to fail sooner than normal. Google for Western Digital aggressive head parking and you will find lots of forum posts on the subject."

Maybe I'll give it a shot anyway. Thanks everyone.