This tutorial will show you how to install retail PS3 Firmware from a memory stick/memory card.
1. Download the PS3 Firmware that you wish to update to. A list of all the retail Firmware can be found in the PS3 Downloads section of this site: http://www.ps3news.com/forums/downloads.php?do=cat&id=8
All Firmware files will be named PS3UPDAT.PUP, there is no way of telling which f/w is which by the name of the .PUP file.
2. While that file is downloading, on the root of your memory stick make a folder called "PS3" and then make another folder inside called "UPDATE"
3. Then once the file has finished downloading, place it into the update folder, as the example shows below.
MEMORY STICK > PS3 > UPDATE > PS3UPDAT.PUP
4. Then plug your memory stick into your PS3 and go to Settings > System update.
5. Then press install via storage device:
6. Click on the correct device and the PS3 should automatically recognize the file and begin the update feature.
Your PS3 console will now be up to date with the latest PS3 Firmware and features!