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A hacker on YouTube has claimed that he is testing the worlds first PS3 mod-chip. According to the hacker, the games can be loaded off an external memory device, and it supports all firmwares. He points out that it is still in testing stages, but nothing has been proved as of yet.
essentially though it really doesnt matter, id love a freekin modchip but sony WILL win ... it was easy with ps1 ect because they dont need updates.. but the newer games coming out will require updates to work.. leaving you able to just play old games and essentially turning your ps3 into a glorified toaster LOL.. its already begun with the ps3 refusing any foreign usb devices ect...