Just helped one of my friends install his SSD that he just got, and I had to do the install OS from USB thing as well. It seems that PS3 Slims need to do it following the link that Funkfactory posted earlier, whereas PS3 Phat users can just plug and play as it were.

I can also confirm that only copying some select saves work fine for Skyrim, there is no need to do a complete backup if you don't want to. I don't really know why you wouldn't want to but I recall someone asking about it so might as well confirm it.

Glad to hear that it sorted your game as well as it did mine, Funkfactory, and best of luck to you others who plan to do it the SSD way for now.
To clarify it up, yes the PS3s SATA controller is too old to properly harness the power of the new HDDs, so any SATA-III SSD will run at full breeze at all times, and most SATA-2 drives will be just as fast since the bottleneck is in the controller.
Personally I prefer intel SSDs, but Corsair and OCZ have been proved to work just as well, so any of those vendors will be absolutely fine! I imagine any SSD will make your gaming experience that much more enjoyable so take what is available/cost efficient.
I didn't do this modification just for Skyrim either, it's improved my other games as well (most notably Hyperdimension Neptunia in my own library) and I expect future games to benefit from it as well. If you don't feel that you need it after you're done with Skyrim, you can always pop it into your computer instead and make windows load in 15 seconds instead

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