Instructions
Turn on your PS3 and remove any discs from the console.
Plug your iPod into a USB port via the iPod cable.
Scroll to the "Music" option on the Cross Media Bar. The Cross Media Bar is the toolbar on the main menu. The PS3 will recognize the iPod, and you will notice the "USB Device (iPod)" option displayed on the screen.
Highlight the "USB Device (iPod)" option and press "X" on your controller. If you receive a message that reads "There are no tracks," press the "O" button on your controller to return to the previous menu. The "USB Device (iPod)" option should still be highlighted on the screen.
Press the triangle button on your controller and select the "Display All" option.
Scroll through the folders displayed on the screen and locate the "iPod_Control" folder. Press "X" to open the folder.
Scroll down to the "Music" folder and press "X." Depending on the number of songs you have stored on your iPod, a list of folders will appear on the screen. The folders may be listed as "F00," "F01," "F02," etc. Your iPod music is stored in each of these folder. Locate the song you want to play, and then press "X."