HDD upgrade problem. The system software cannot be run correctly

"The system software cannot be run correctly. Press the PS button to try to restart the system.
If the system cannot be restarted, the system partition of the hard disk must be reformated and you must install the system software. Insert storage media that contains update data of version 3.55 or later, and then press the START and SELECT buttons at the same time.
For information on how to obtain update data, refer to the SCE web site for your region"

sighs...

How i get this message,
I simply took out the 80GB HDD and changed to a 2.5 inch WD scorpio Blue 500GB hdd.

So I thought my PS3 was screwed, i put back my old 80gb HDD, wow, it works again. I changed to 500gb hdd, it stuck at the screen again.

I tried use PS3 OFW in external hdd to update, after it finish update, it just pop back to same screen again.

So anyone has solved the same problem, do guide me. THank you!

btw do i need to format the 500 hdd in my computer before i swap over??

HDD must be formatted as FAT32 to read/write files as an external hdd on ps3. To use it as internal hdd formatting must be done by ps3 because of its proprietary file system. Put 3.55 OFW on USB flash stick and put in right most usb port on ps3, with scorpio installed and try firmware update again. After successful installation you can choose to go to CFW or recent OFW.

happened to me once - it seems that the PS3 dont proceed with the usual formatting to prep the new hdd.
what i did was, remove the new hdd and tried it to other PS3 (got one spare with dead lens) and it did format the new hdd - removed it from my spare PS3 and tried it again, then it went formatting the drive.
have you tried recovery mode? option to reformat the drive?
sorry if this could not be of help - just thought of sharing =)

Do you see an error code ??

Backup your 80gb, then try to install it in the new disc.

If doesnt work, try another disc.

I have a 80 ceche01.