windows wont format that big a drive with fat32. swissknife did work ... but apparently, it doesnt like other USB drives plugging in or out while it is formatting (and it pretty much &^*^s it up. i was halfway when i discovered that. had to use windows to reformat, shutdown and try again with swissknife.
first try, i had three folders ... music, pics, vids - loaded all my music.
went to ps3, HD detected. it said "no files" inside
brought the HD back to my PC - the files are all gibberish.
quick format.
loaded 1 folder, inside a few songs.
detected and played finally!
had to reformat