This is a tutorial that I found on IBM, but with some changes because some things were a little messed up. This does work, I know because I'm running it right now.

:P
Also, if you change your mind at any time after you've set it to boot Linux, Ive found out a way to get it back to the PS3 Firmware. To do this, put it in standby, than hold the powerbutton till it beeps 2 times, than let go of it.
REMEMBER! I forget when it happens, but sometime during the install, you will need to set a password,
DO NOT FORGET THIS PASSWORD OR ALL IS LOST!
Preparing the PS3
To install Linux, you need several pieces of additional hardware:
* A display and appropriate cabling
* A USB keyboard
* A USB mouse
* A USB flash drive
On the display, there are a few gotchas to watch for. First of all, the 20GB PS3 only comes with an analog composite RCA plug for attaching to TV-like output devices. You can convert it to VGA through a special cable. Unfortunately, this operates only at 576x384. If you want better resolutions, you'll have to use the HDMI port. However, that can lead to additional problems. HDMI can be easily converted to DVI through a cable. So this should be able to be fed to a DVI-compatible monitor, right? Well, no. There is a content-protection protocol called HDCP. When outputting data over the HDMI port, the PS3 will not output any data to non-HDCP-compliant devices. Therefore, unless your monitor is HDCP-compliant, you cannot use it to get digital output from the PS3, and you're stuck with 576x384 (though some have reported higher resolutions using component video output rather than composite).
To prepare the PLAYSTATION 3, perform the following steps:
1. Connect the ethernet cable to the PS3. Be sure the network has a DHCP server on it.
2. If this is a fresh-from-the-factory PS3, go through the setup steps as it prompts you on your first bootup, including setting the language, time, and a username for the PS3 system.
3. Go to Settings, then System Settings, and choose Format Utility.
4. Select Format Hard Disk, and confirm your selection twice.
5. Select that you want a Custom partitioning scheme.
6.
WARNING! THIS WILL DELETE EVERYTHING ON YOUR PS3!!!Select that you want to Allot 10GB to the Other OS. This will automatically reserve the remaining disk space for the PS3's game operating system. When finished, it will restart the system.
7. When the system restarts, go to Settings then System Update.
8. Choose Update via Internet.
9. Follow the screens for the system update to download and install the latest system updates. Some screens only have cancel buttons, with no instructions on how to move forward. In order to move forward on those screens, use the X button on your controller.
10. Once the PS3 restarts, it's ready to have Linux installed on it.
Preparing to install
Now you're ready to prepare the Linux side of things. Here are the steps you need to do on your own computer (not the PS3) to prepare for the installation:
1. Download and burn the
YDL 5 DVD ISO. There is no CD install -- the PS3 only takes DVDs. Make sure you download the one in the ISO folder named "yellowdog-5.0-phoenix-20061208-PS3.iso" or you will have problems later on. The 5.0.1 is for macs. I know it is an ISO, but it's a 100% LEGAL iso.
2. Download the PS3
OtherOS installer from Sony and save it as otheros.self. This is the file that runs on the PS3 game operating system to install foreign bootloaders.
3. Download the
YDL bootloader from Terra Soft and save it as otheros.bld. This will be the bootloader that the Sony installer will install.
4. Insert a USB flash drive into your computer. (The PSP works as well, that's what I used)
5. At the top level of your flash drive, create a directory called PS3. Immediately under the PS3 directory, create another directory called otheros.
6. Copy the last two files you downloaded, otheros.self and otheros.bld, into the PS3/otheros directory you just created on your flash drive.
Now it is time to install.
Performing the installation
Perform the following steps on the PS3 to install Linux onto it:
1. Remove the flash drive from your computer and insert it into the PS3.
2. Go to Settings, then System Settings, and then choose Install Other OS.
3. Confirm the location of the installer, and follow the screens for the installation process. Note that this only installs the bootloader, not the operating system.
4. Insert the YDL 5 DVD.
5. Plug in your USB keyboard and mouse.
6. When the installer finishes, go to Settings, then System Settings, and select Default System. Then choose Other OS and press the X button.
7. Select Yes when it asks you if you want to restart.
8. When it boots back up, it will look like it is booting Linux. That's because the bootloader is actually a really stripped down Linux kernel called kboot.
9. When it gets to the kboot: prompt, type install if your output is going through the HDMI port, or installtext if you are going analog. The remaining instructions assume you used the installtext option, but there is little difference.
10. After media verification it may give a Traceback error in the blue area of the screen. Just ignore this and proceed through the installation screens.
11. When it asks about partitioning, don't be concerned about it erasing the PS3 data, it just erases the 10 gigs that you said it could have earlier, not the games/music/videos/gamesaves/etc.
12. When it gets to the package installation, it takes approximately one hour to install the packages. However, it does not install the whole DVD.
13. When it reboots, if you are using analog output, you need to type in ydl480i at the kboot: boot prompt. Otherwise it will likely change the output to a resolution that the analog output isn't capable of.
14. When it boots, it will bring up a setup tool. There is nothing you really need to do here. If you don't do anything, it will time out and finish the bootup process.
And there you have it! YDL 5 is now on your PS3!
And now, the most important part that IBM somehow forgot! :evil: :lol:
Anyways, it will have a screen asking for a login and password.
The login is root and the password is the one you chose earlier. Than it will have one more thing to put stuff in(I forget what it was) But just type in startx.
If all you get is a black screen after you type startx, than restart the PS3, type in ydl480i when it gives you the kboot: than when you get back to the screen with the password, put Xautoconfig first(you will only need to do this once), than put startx. From than on, you just need to put in ydl480i, login, password, and startx.
If you have any questions, post.