When you install a new hard drive in your PS3, in the newer models you will need to install the firmware from a local drive (USB stick). Under certain conditions might get one of two errors. The first error is “no update found”. The second is the update is corrupt error code 80029564.
The steps you need to take to avoid these errors are:-
1. Make sure your USB stick is formatted in fat32. The PS3 won’t recognise NTFS.
2. On the blank formatted USB stick create a folder called PS3 (you must use CAPITALS!)
3. In the PS3 folder create another folder called UPDATE (again must be in CAPITALS!)
4. Download the firmware DIRECTLY to the USB stick. DO NOT download it to your PC/Mac and copy it to the USB stick, this is what corrupts the file! Make sure you download the correct firmware for your country, the US firmware won’t work on UK console.
5. Turn on your PS3, connect a joypad into one USB port and put your USB stick in another. Press the PS button on the joypad, then press start and select together. Your firmware will now install correctly.