your Hard Drive needs to be reformatted.

will i lose all my downloaded games and DLC?

1: Open the side of your PS3 where your HDD is
2: Take the screw out, but leave the HDD in
3: When the update begins, pull your HDD out of the slot
4: It will tell you an error occured and it tells you to restart your system and try again
5: Instead, let the count from 60 run out, your screen will go blank for about 30 seconds then it will start back up and tell you that your Hard Drive needs to be reformatted.
6: If you do not get this msg after 30 seconds, do it again until it does! Now, slide your HDD into place again -(make sure your controller is PLUGGED IN) and press the white PS3 button on the controller
7: It will then ask you to either press start and select at same time OR white PS3 Button - PRESS START and SELECT.
8: Do not agree to user agreements!! Simply hit cancel and it will kick back to the PS3 start up screen.

i did what you said and this always happens to me