There has been a lot of debate on whether or not installing Linux on your PlayStation 3 is worth the hassle. For some, it will not be worth it but for others it certainly will be. Your PlayStation 3, after installing Linux, will become a very capable and reasonably good desktop computer. It has the hard drive space to accommodate a lot of files such as pictures, videos, and other documents as well as the saved games that you already enjoy with your PS3 console.
Installing Linux on a PS3 is nothing new. In fact, Sony has been marketing this capability for years. In 2002, Sony released a PS2 Linux kit that allowed consumers to turn their PS2 console into a personal computer without voiding the warranty and making it completely legal.
So the question then becomes, is it worth installing Linux? Aside from the uber nerd factor of having Linux on your PS3, your console can become a very good and capable home computer. Browse the Internet, create text documents or spreadsheets using open source software like OpenOffice, use instant messaging clients to keep in touch with friends and family, and you can actually run Windows by running an emulator.
There are many distributions of Linux out there but Sony actually recommends Fixstar Solutions (formerly Terra Soft Solutions) as the Linux distribution of choice. However, other distributions can work with your PS3. Ubuntu, Gentoo, Debian, OpenSUSE, and Fedora all work. Though if you are first starting out, Yellow Dog Linux is the one you should install before trying the other distributions.