Surprisingly, Sony not only allows such modifications, they it. Hard drives have come down in price significantly, so a huge drive is pretty affordable.
The PS3, aside from being a game console, is also a pretty powerful media center. Its worth noting, all that you need is a drive capable of 5400rpm and 1.5gb/s. All of the PS3's system data is stored away safe and sound, far away from your shaky, nervous hands. If you use the correct tools, take your time, and follow directions, it'll be fine.
In Internet Explorer, it does show that I have Flash installed, but it's the previous version (but that is likely due to the fact that I downloaded Flash from Mozilla, not IE, and they use different modes in each browser - so an update that you download from one browser does not necessarily apply to the other browser).
Next, fold out the little wire handle and use it to slide the entire hard drive tray to the right. There are four screws holding the actual hard drive in the tray.
Once its all the way to the right, pull it towards you and slide it out. From what I can tell, these screws are made out of butter.
I'll go over the steps involved in replacing the stock hard drive in a Playstation 3 with a larger one.
I avoided doing this for a long time because I was under the assumption that it would void my warranty.
If you backed up to an external hard drive beforehand, plug your drive in, go to System Settings Restore and follow the prompts.
If you just copied your game saves (like me), just pop your memory card back in and copy them over.
That little guy is what's holding the hard drive tray in place.
Carefully remove that screw and put it somewhere safe.
Once all the screws are out, just slide the old drive out of the tray and slide the new one in. Its not a pronounced click, but its pretty obvious when its back in.