153w ago - The
DemonHades Spanish PS3 Development team has been
working on a project which aims to utilize a mod-chip to run PS1 and PS2 back-ups on a PS3 console without
opening it or
using switches and have posted up a concept video today.
According to one individual with a
highly questionable reputation, this concept project could work because PS1/PS2 discs are authenticated only once on the VSH though liblv2 and the PIC chip would just automate it.
However, if Sony updates liblv2.sprx and more specifically ps1rom.bin so the emulated mechacon is updated it could be patchable.
Finally, to roughly translate from the video's caption:
"This video montage shows the operation of the chip that we are developing to load copies of PS1 and PS2 (if you're retro) in the PS3.
This video shows how to work, without leaving the console open and without switches etc out.
More information on the development of moddchip www.demonhades.org."
the System software version 4.41 is what i have. And I have an external hard drive which is 500 GB. I might be being thick is there a process on need ...
Thanks for the update 
Exactly Boss
if someone will not break the XMB protection no one never will see PS3 backup running.
Any thoughts?? Seriously make a fake bluray movie structure, place all game files in the structure then point the play movie button to the ps3 executible file?? what's the worse that could happen like the drive is unlocked and the executible may boot just wonderin...
Well, I know in the past (the first year it was out) many users and Devs tried all kinds of "experiments" with movie discs on the PS3... from what I recall, the conclusion to them all was that movie and game discs use a different mode and authenticate differently on the PS3.