The PlayStation 3 has a rather classy user interface and users can gleefully destroy that aesthetic by using their own images as a background.
You will need at least version 1.9 System Update on your PS3.
Getting the wallpapers to your PS3
The simplest way is to browse this blog using the PlayStation 3’s browser. Using the Start button enter the web address (misterslimm.wordpress.com) and then add it to your bookmarks by pressing Select and choosing [Add to Bookmarks]. Find a wallpaper on this blog. When you’ve navigated to the full size wallpaper at ImageShack or Shareapic, press Triangle, select File, then Save Image. Save the image to your Hard Disk.
Alternatively, you can copy pictures to the PS3 using a USB stick. Create a folder called “Pictures” on the USB stick and copy your pictures in there. When you plug your USB stick into the PS3 you can copy them from the stick to the PS3.
Setting the wallpaper on your PS3
To use images as wallpaper (using the current 2.x PS3 system software), select the image from your PS3’s photo collection using Cross. Press Triangle and choose Set as Wallpaper. Job done!
Where to get wallpapers for your PS3
Currently, this is the most popular wallpaper on this blog:
I love the fat photographer in that shot. I have a great sense of solidarity with him.
UPDATE 13 February 2008: new instructions on setting wallpaper directly from Internet and updated instruction on how to use a photo on the hard disk as a wallpaper.