Instructions
Insert the USB drive into a USB slot on your Windows 7 PC.
Click ̶0;Start̶1; and then click ̶0;Computer.̶1;
Right-click the ̶0;Removable Disk̶1; icon and select ̶0;Format.̶1;
Click the button under ̶0;File System̶1; and select ̶0;FAT32.̶1;
Click the ̶0;Start̶1; button. Your computer will now format the USB drive.
Get to the location of a PKG file on your computer. Next, right-click the PKG file, point to ̶0;Send To̶1; and then select ̶0;Removable Disk.̶1;
Remove the USB drive from your computer and insert it to your PS3.
Scroll over to the ̶0;Game̶1; option on the XMB.
Select ̶0;Install Package Files̶1; and press the ̶0;Circle̶1; button to see the PKG file.