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Sony - PS3 Update 2.41 us up - View Post

west-phoenix-az on 08 July 2008
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I couldn't get it to work the first few times I tried. Then I found the instructions:

Update data download procedure

  1. Create a folder on the storage media in which to save the update data.
    Using a PC, create a folder named “PS3” on the storage media or USB device. Within the PS3 folder, create a folder named “UPDATE”.
  2. Download the update data and save it in the "UPDATE" folder created in step 1.

Source: http://www.us.playstation.com/PS3/About/SystemUpdate/pc_update.html#update_PC

I had trouble getting my PS3 to recognize photos and videos, but I saw the "view all" option that let me find everything on the flash drive. Not sure if you can "view all" for the update process.