I have a Freecom attached to my Mac. I use the eSATA interface but I guess from what you was saying that you tried hooking up to the PS3 over USB. I would have thought it would have seen the drive to be honest. Shame it didn't. Have you tried connecting it to your PC and just streaming it to the PS3? It was quite easy to set up. Also, did you notice that you can now stream WMV and WMA files too to the PS3

Who'd have thought huh?