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okay so the place i purchased the HDD from is not willing to refund or exchange the HDD is they claim there is nothing wrong with it (i.e. it is not faulty). which is true. but of course it doesnt do what I want it to do -> work as a hdd for the ps3.
sucks. now i have to spend more money.
OKay so i bought the WD 1TB Caviar Black 3.5" and installed that into the extender. worked like a charm. to those looking to use a 3.5" hdd with their ps3 phat, please cross seagate barracuda 1tb 7200.12 off the list of compatible drives.
hope this will help someone if they find themselves in the same situation as me.