PS3 External Hard Drive Use

[Gandizzl]

As many others who bought a PS3 at the release date, I'm starting to get little space left on the hard drive.
I know you can easily install a new internal hard drive, and that you can use a external hard drive for videos, music and photos.

But I was thinking that instead of going through all the hassle of installing a new hard drive and copying all my files etc... that I could just buy a new external hard drive and hook it up.

So what I was wondering, and can't seem to find a answer to, is if anyone knows if you can install games and demos on a external hard drive hooked to your PS3 and run them from there or is it only videos and such you can run from an external?

[ramsrock77]

I found this site that sells an extender

http://www.thegametrain.com/blog/200...-with-ps3.html

My only question: is there a loss in performance via the USB cable vs internal? I asked that question on the site above but don't have an answer yet.