Right okay guys this is working fine.
Basically what you need to do is get your computers IP address and add it to your PS3 internet connection seetings. Select the proxy option when setting up your internet connection on your PS3.
To find your IP address for your PC:
Click Start and then Run, in the run window type cmd and press senter this will open cmd. Once cmd has opened type: ipconfig /all
This will display your PCs netwrok information. Where it says IP Address: that string of numbers is your IP address.