Recently I finally decided to go for a new hard drive, and I figured I'd post a little about it for anyone else who is looking for a little more storage capacity on their PS3.
The first thing I will say is that it is an incredibly painless process. I really have to give credit to Sony for this. I didn't have to take my console apart, or buy and special Sony branded overpriced shit. No transfer cables or content reactivation. Everything should be this simple.
I ordered a 2.5" SATA 500GB laptop hard drive off futureshop.ca for $60. When it finally came, all I had to do was use the backup utility to make a copy of all my save games and PSN titles on my USB hard drive. Then I turned the console over and took out a single screw. After sliding the hard drive's little enclosure out I undid 4 more screws and installed the new one in it's place. Then I booted up the console and ran the restore process. It took about half an hour to run, so I went and had lunch. Then when I came back everything was good to go.
Overall this was a great upgrade, and at 60 bucks it was very reasonably priced. Sure as hell beats paying $170 for a 250GB Xbox 360 Hard drive. Now that Sony's 3.56 firmware fuck-up that bricked consoles with upgraded hard drives has supposedly been fixed, this is an easy upgrade that I would recommend for anyone looking to get a bit more out of their PS3.