Make sure you are on 3.55 FW or lower
Plug your USB drive into your PC
Create a new folder on it called "PS3" (must be in capitals without quotes)
Inside that PS3 folder, create a new folder called "UPDATE" (must be in capitals without quotes)
Save the file “PS3UPDAT.PUP” into the UPDATE folder on your USB storage device (this is provided by the TB team)
Unplug the flash drive from your PC and plug into any free USB slot on your PS3
Go to the “Settings” XMB menu, choose “System Update”
Choose “Update via storage media”
The USB drive will be scanned. If you get an error that no update file was found, ensure that the folder structure is correct
Select “OK” to copy the update file to the PS3′s hard disk
Wait for the file to be copied and the PS3 should reboot automatically (leave the USB drive plugged in during this phase)
When the PS3 has started up again you should be presented with a screen showing the version of the system software ready to install. Press the PS button
Wait for the “Checking for update data” to complete
Accept the user agreement
Press X button to confirm the installation
The update will be installed and the PS3 should be rebooted!
Now transfer TrueBlueUpdate-2.61.pkg file to the root of your flash drive on your pc and plug it in your ps3 console
Open Install Package Files and install the TrueBlueUpdate-2.61.pkg file
At this point make sure nothing is plugged in the ps3's usb ports
Open Playstation folder and run the True Blue Updater
Follow the on screen instructions to complete the dongle update