I took this from another forum,shouts to Cylon for this post.
For all those people getting error messages when trying to do the internet connection setup....
I had the same problem. I did a ipconfig/all on dos on my computer... found out all the numbers I needed to, and it would say ip address - sucessfull... and internet connection - An error occurred while resolving the name with the server (80710102).
So what I found out was to put in the IP address you find in ipconfig/all but add one to the last octive. Example if yours is 172.16.1.25... then in your ps3 type in 172.16.1.26
Then I was using the primary and secondary DNS numbers that my computer was giving me in ipconfig/all. Do not use those. For your primary DNS number use the number for your default which should be a right below your subnet mask number. For the secondary DNS number just leave it blank. 0.0.0.0
Then you have to upgrade to version 1.50 (which just came out yesterday actually). Get a memory stick with at least 100mb space on it. Make a new folder that is names PS3. Inside that folder make another new one that is called UPDATE. Both must be in capitol letters. Then go to PlayStation.com - PLAYSTATION®3 - Network - updates and click on "download now"... Then click save and save it to your memory stick in the UPDATE file, which should be in your PS3 file.
Then after all is done... plug that into your ps3 in one of the USB ports for the controllers. In the main screen go to SETTINGS and then go to SYSTEM UPDATE. Go to UPDATE VIA STORAGE MEDIA. PS3 will search for your media stick and it should say on the screen The latest update data was found... Version 1.50. Click OK and follow the rest of the instructions. After it is completely done... go back to the internet connection setup and go through all the menus to make sure all your numbers are the same as I stated above. Then at the end run the connection test. It should work!
I took me three hours of messing with mine before I figured it out so I figured I'd pass it along because I was on here forever trying to get it to work. I hope this helps!
Or here is another post from these forums that i found - Link