How to update a PS3 using USB drive and the PS3UPDAT.PUP
How can I use a PS3UPDAT.PUP file downloaded from the Playstation System Software site to update my PS3?
Copying it to the root of a USB flash drive doesn't seem sufficient. Does it need to be in a particular path?
Solution 1:
You have to place it on your USB key in a /PS3/UPDATE folder. Then, go in Settings | System Update and choose Update via storage media.
The file should then be detected and the system updated.
You can find this information on Sony support site here.