Instructions
Press the button to open the computer's disc tray and insert a blank CD-R or CD-RW. Close the tray. Click the "Burn files to data disc" option when the dialog box appears. Type "PS3 Update" in the name field for the disc, and then click "Next." Wait for the empty disc folder to appear.
Right-click a blank area in the folder window and point to "New" and then click "Folder." Name this folder "PS3" with uppercase letters. Double-click this folder and inside create another new folder, naming it "UPDATE" with uppercase letters. Double-click the "UPDATE" folder.
Click "Start," "Internet Explorer." Navigate to the PlayStation support website and the PS3 support section. Click on the "Download Now" image link. Click "Save" on the dialog box that appears. Select the "UPDATE" folder as the save location and click "Save" again to download the update file.
Click "Burn to disc" on the toolbar if Windows does not automatically burn the the update file for you. This burns the contents of the "UPDATE" folder to the blank CD. Wait for the burning process to complete and then eject the disc from your computer.
Turn on your PS3 and insert the disc into the disc tray. Navigate to the "Settings" menu and then press "X" to select "System Update" from the list.
Select "Update via Storage Media" on the update method screen. The PS3 automatically finds and installs the system update on the disc. Wait for the install to complete, and then take the disc out of the system.