Ps3 Hard Drive Failed?

When I try to restore it got stuck on 11% now it wont' start to restore. It says connect the storage media of 4.0 or later. I have downloaded from here http://uk.playstation.com/ps3/support/system-software/ put it on my fat32 drive but the ps3 won't recognize it. This is with the internal hard drive the ps3 failed with

I have nothing backed up, from watching youtube videos I need the latest update on a external hard drive and a new 2.5 internal hard drive. Where do I download this update?

Suggestion:

Maybe you got it sorted. Had the same problem.. If you downloaded an update you have to create special folders on your storage media. Create A folder PS3.. Make sure its in capitals. Then inside that folder create a folder UPDATE. In capitals also.. Den inside that folder copy/move the update.. Then it wil recognise it..

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With great pleasure!

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