Most 2.5 inch SATA drives should work on PS3 but it's not a guarantee, and since I can't seem to find any customer reviews that indicate that it does work on a PS3, I can't be sure. I can, however, tell you that I recently purchased
this 1TB drive for my PS3 and it works great. I also bought
this cheap HD enclosure so that I could transfer everything from my old HD over. What I did was a bit complicated, but it worked. I first formatted my new 1TB HD (FAT32) and stuck it in the enclosure, and used the PS3 backup option to back up my old hard drive. I then transferred all of the files that were on the new 1TB hard drive onto my computer, pulled the old HD out of my PS3, and stuck the new one in. My PS3 automatically formatted the 1TB Hard drive while I stuck the old hard drive into the enclosure and reformatted it manually into FAT32 using my computer. I then transferred those backed up files onto the old hard drive, which was now in the enclosure, and plugged it into my PS3 USB port and used the PS3 backup restore option. It worked wonderfully, and despite the official Playstation website saying that some things may not transfer, this method did in fact transfer everything that was on the hard drive.
As for the matter of 5400 RPM vs 7200 RPM hard drives, I did a little research myself before I made my hard drive choice. I ended up going with the 5400 RPM hard drive since, even though load times are increased by 2-3 seconds for games that load from the hard drive, I've seen a decrease of several degrees in operating temperature in my PS3. I'd rather sacrifice a few seconds for load times and know that my PS3 will last longer because it's running cooler.
