Well it works, I used this to play tekken 6 and uncharted 2, though tekken 6 got some STUPIDLY long loadtimes, uncharted 2 worked perfectly.
Not sure but it seems like a coding problem in tekken 6, it just seemed like it was just sitting there doing nothing most of the time (my thought was maybe it waits for some kind of timeout, or maybe it just searches through the entire drive to find the file)
It wasn't particularly playable at least imo when it comes to tekken6.. No doubt it's a step forward at least as it will work on some games.
Just an idea... Why not use the PS3 to format the external hdd? If you insert a new hdd into the PS3, the PS3 formats the drive into UFS2 (I think). This file system obviously allows files larger than 4GB. If you remove the drive and put it into an external hdd casing, connect it to the USB ports then theoretically it should be able to read the drive. But it doesn't for some reason. Now if that reason can be targetted and resolved, we would not have to worry about large files on the external drives.