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.
If you have an external hard drive that's formatted in NTFS, you can use the Disk Management utility in Windows to reformat the drive, but you'll need to create partitions on large external hard drives because Windows can only do FAT32 on drives 32GB or smaller.
If your storage device isn't large enough to handle a full system backup, you can selectively copy data over through the various music, photo, and game menus in the XMB.
Your Play Station Network login and system settings will remain safe on the system during the entire process.
It doesn't matter if you have the 20GB, 60GB, or even the new 80GB Play Station 3--you can always use more storage space.
All that available hard-disk space quickly disappears once you start downloading games, demos, and HD videos.