If this is real...
Set guidelines for your kids. Although when I read "three PS3s" my initial reaction is sell one of them and buy your daughter a bike or something...or maybe even some matches. I remember my first (and only) trip to juvy was when I was playing with matches at a lumber yard and the owner caught me.
I don't want to be one of "those" **bleep**, but you should consider establishing regulations and then give your daughter some tools to have an exciting childhood outside of old men on the internet asking for creepy pictures.
i suggest that u do not let her play ps home when you are not around. u should b there at home while she is using the ps3 at least.
if for some odd reason that your parenting limits u from accomplishing this, then please sit down with her n explain how many fake people there are online. that who she may think is a female friend (especially if they start talking sexual n say they r lesbian), then that so called 'female' avatar friend may actually be some old perverted man who may try to gather information on your child, including your home address, her cell phone number, pictures.
if your child sends that pervert a picture of herself, n if she had used that picture on facebook, the guy can do a reverse google picture search n find her facebook page.
then he will start stalking her through facebook.
talk with your daughter, explain to her that these men r likely unemployed, unattractive, likely abusive, likely disgusting n will cause her more harm in life than any good that could ever possibly come out of it. perhaps even physical harm, if that sicko finds her. including rape, kidnapping, murder. do *not* take it lightly. this also applies to women, men r not the only pedophiles.
get her a quality digital camera n remind her to take screenshots of all unwanted behavior, if something merits it, she can send those screenshot pictures to the HomeForumMods here through a private message.
a cell phone can also be used to take screenshots.
the pictures can also be used in a cyberstalking case if the person starts stalking your daughter.
cyberstalking is a crime, contact the fbi in your state if this ever becomes the case.
people who do such things as cyberstalking online are nothing more than weak pathetic cowards who have no ability to socially interact online in any proper way over the long run, nor in real life. they may be quite intelligent n give the appearance of being socially adept while luring your child, but over time the reality of what they are will come to light, especially when they start talking sexual. they may also introduce your child to another psn id, usually of opposite gender. that other id will likely be them on a second ps3, n it will likely b of a different personality that will talk sexual to your child. many people that use playstation home have multiple ps3's, but the only ones u need to worry about r those attempting to lure your child. that's why you need to discuss this with her, have her read this post.
never give the sickos n edge, always have a camera ready, take screenshots.
never send pictures of yourself to anyone online. esp not those that u use on a private facebook page. you may seriously regret that.
You were not correct when you said Home hasn't changed much, it's gotten worse. Being a parent isn't a popularity contest, tell her NO Home. All the things you've seen yourself is enough to know that users will try to warp your child.
Thank you for all your help, I'm still worried about my daughter using home but it's good see not the entire community is pedophiles... But still a vast majority seem to be... I'll try to take this advice and utilize it to the best of my abilities, keep her home play time to a minimum and also report any pedophile like behaviour to the authorities. It's just hard since older generation like myself don't really understand, honesty I feel accomplished just making to this forum. But maybe sony should actually put a dangers of home or a parents section on the site to make it a lot easier for others like me.
Seroiusly do you really believe the community is filled with pedifiles? You do realize that any online venue including Facebook and other social media sites can be a problem as well when it comes to pedifiles.
I think as others have pointed out you neeed to raise your kids with values and an understanding of what is right or wrong and how to deal with people who might want to take advantage of them with open and honest discussions. 14 year olds are far from naive these days and as others have mentioned if you are not confortable with her being online when you're not Home restrict access. That is easy enough to do.