Mmmm...that would be illegal, so I wont be doing that for you. I don't see why it wouldn't work though, since it will be an exact copy.

PS3 has it's own harddrive so no need for usb or flash, but as it happens I streamed it over the wireless network from my laptop, using TVersity. TVersity will convert any divx format into the correct one for PS3, on the fly.