Format your own PS3 USB Hard Drive using command line in Windows 7

How to prepare a external usb hard drive for use with your PS3 .

First you need a hard drive ( I used a 2.5in 60gb drive pulled from a laptop + USB to SATA/IDE Connector Cable Set ) . I did this just for testing I strongly recommend you purchase an external case for your drive or purchase a prepackaged unit

.  Go ahead and load up Windows then attach your hard drive , now

Hit the Windows/Start Button -> type cmd.exe in the search box -> press Ctrl+Shift+Enter to get an Administrator Command Line. If prompted, press Yes or enter administrative credentials in the UAC pop-up box.
At the command line prompt, enter

format <drive letter>: /FS:FAT32

For a list of all command options, enter

help format

Windows 2000 and later have an artificial limitation in formatting FAT32
 partitions greater than 32GB (though they will mount any valid FAT32 
partition). Check for part 2, for anyone that couldn't get this working.