How to Play Games on PS3 from USB
Format your USB to FAT32 and create a 'GAMES' folder. Put your game files in there, plug it into your PS3, and use multiMAN to launch your games.
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First, make sure your USB drive is formatted to FAT32. Then, create a folder named 'GAMES' on the root of the USB. Place your game files (in ISO format) inside that folder and plug the USB into your PS3. Use multiMAN or WebMAN to load and play the games from the USB. Happy gaming!
Just play the games from the disc; it's simpler and less headache.
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