Keeping your PSP's firmware up to date is important if you want to take advantage of all the neat features Sony has included.
Many new game releases will also require you to have a certain firmware version to play on your system.
Once you have your upgrade drive, the next step is to back up the data on your current PS3 hard drive to an external storage unit.
You can skip this step if you aren't attached to your music, videos, and game saves, but most of us will probably want to save all that information.
Fortunately, Sony has designed the PS3 to allow console owners to perform their own hard-drive upgrades.