UBUNTU looks like the best choice due to it's compatibility and stability. The 8.10 (Intrepid Ibex) release was ported to the PS3 on the same release date as the official main Ubuntu release. It can be downloaded here:
http://cdimage.ubuntu.com/ports/releases/8.10/release/ubuntu-8.10-alternate-powerpc+ps3.iso
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Linux supports PlayStation 3 since kernel version 2.6.21, so no patches or modifications are required for it to run. There is also a user friendly Linux add-on CD for the PS3 including support for Fedora 8 and other operating systems that already claim to install natively on the PS3. However, there is currently an issue with the latest kboot provided by kernel.org. Once the user has pressed enter to continue with the default action, the USB ports are de-registered on some systems. A work-around was created and is available on the PSUbuntu site
Versions of Ubuntu up to the current release: 8.10 have been ported to the PS3 platform[1]. The installer cannot run in Live mode when running in 480i or 480p video resolutions, but it offers an alternative installer (text-based) that will install a fully functional Ubuntu operating system. It is possible to have an external USB hard drive attached to the PlayStation 3 during install and choose to mount that as the home folder.
The LTS release 8.04 (Hardy Heron) of Ubuntu is incompatible with the PS3. However the 8.10 (Intrepid Ibex) release was ported to the PS3 on the same release date as the official main Ubuntu release.[12]
Ubuntu includes well-known GNU/Linux components such as Apache, PostgreSQL, and Python. The distribution also includes user applications, such as the Mozilla Firefox Web browser, OpenOffice.org, Evolution, Rhythmbox, Pidgin, and GIMP.
Ubuntu is a derivative of Debian and relies on the Apt Package Manager, using .deb format. Through successive versions of Ubuntu every 6 months, more hardware support is added frequently. As a result, Ubuntu supports accelerated graphics hardware out of the box, although some other hardware components will not function properly without modifications to the kernel.
Debian[6], Fedora 8[7], Gentoo[8], OpenSuSE and Ubuntu[9] can be run on the PlayStation 3.[10] Yellow Dog Linux for the PlayStation 3 was first released for the PS3 in late 2006.