The otheros.bld file on the latest Gutsy release (10-25-2007) had an issue with USB deregistering that made the installer halt. To avoid it you need to use an alternate kboot. Here’s a quick howto:

Download this otheros.bld file and put it on a USB stick or burned media using the path

/PS3/OTHEROS/otheros.bld

Then, with the media inserted in the PS3, select [System] > [System Settings] > [Install Other OS]. The system will detect the otheros.bld file and use it to install a different kboot. Insert a CD with a burned iso of the latest Ubuntu port for the PS3, and set [Settings] > [System Settings] > [Default System] to [Other OS].

You should now be able to install the latest Ubuntu release by following our installation guide from step 3.

The Ubuntu team created a custom package installer specifically for PS3 that eliminates the “cant load kernel” error. Get it while it’s hot:

http://cdimage.ubuntu.com/custom/20071025-gutsy-ps3/

UPDATE: You need to use a different kboot than the one contained on the iso file to avoid a USB deregistering bug. See this post for instructions.

Petitboot is a very nice looking visual version of the bootloader for the PS3, kboot. According to the creator, it should work as a replacement of otheros.bld.

Find downloads and instructions here: http://ozlabs.org/~jk/projects/petitboot/

Thanks, Jeremy!

UPDATE 2: A sollution has been posted to the HowTos forum. Thanks, trainstoker!