When you say that you are upgrading, I assume that you mean that you are replacing a smaller external hard drive with this one. An external hard disk cannot upgrade the PS3 hard disk. External hard disk drives can only be used to backup the PS3 internal hard disk, and to store music, photo, and non-Playstation Store video files. An external hard disk drive won't give you any more space to download or install Playstation Store games, DLC, or videos; unless you have a lot of music, photos, or other video stored on your PS3 that you can move to the external drive. An upgrade requires that you replace the PS3 internal hard disk with a larger one.
The only requirement for using an external hard disk is that it be formatted as FAT32. A 2TB drive would generally be formatted as NTFS. WD provides a utility on their web site to format their drives as FAT32...
Windows won't format a partition larger than 32GB as FAT32, but the FAT32 format supports drives up to 2TB if you do the formatting with other software. There is nothing else to do in order to use the Elements drive.
Hi there and thanks for the reply to my problem
I have the 12gb super slim ps3. I had brought the 2tb hd today so i could use it with my ps3 but wasnt shure how to get the data from ps3 over to it so i can keep using till I get a internal hdd
Well, you need an external drive anyway for backup; so it isn't as though it is wasted money. However, as I said, nothing downloaded from the Playstation Store, except for free game videos, can be stored on an external drive at all. You need an SATA laptop hard drive to install in the 12GB PS3.