216w ago - Although not quite as nice as the optional Tekken 6 PS3 HDD install, today it was confirmed that Ratchet & Clank Future: A Crack in Time for PS3 will have a mandatory (but small) 500MB installation.
To quote: "Much like Ratchet & Clank Future: Tools of Destruction, the latest Ratchet & Clank title also features a mandatory installation. Requiring 500MBs of space, A Crack in Time will only take up a small fraction of your HDD space.
Instead of watching a boring loading screen, though, the game will have Captain Qwark recap the events of Tools of Destruction in an interview.
If you haven't played Tools of Destruction for a while, or somehow missed out on the awesome experience, you'll know the basics as to why Clank is missing and who the Zoni are through this interesting and comical interview."
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prettymuch any 2.5" drive will work, and the PS3 will format it when you start it up the first time. Not sure if theres anything special you have to do for a 3.5" drive or not, besides house it externally.