Your hard drive is most likely trying to crash or has some bad data on it. There are a few options. PS3 can restore the file system/database which gets damaged if the PS3 crashes or when the system hangs when trying to do something and you soft reset. To restore:
- Turn off PS3 so the red light is on.
- Hold and keep holding the power button. The console will turn on, and eventually turn off again.
- Once off, with the red light on again, press and hold the power button. You will hear one beep, another single beep after that, and then two beeps in a row.
- After the two beeps, let go of the power button so it doesn't turn off again and you'll end up in the system recovery menu.
- From here there are a few options. Now this is important, DO NOT CLICK ON 'RESTORE PS3'. That will wipe the HDD clean. This should only be your last resort!!
- What you want is the other two options, 'restore ps3 database', and 'restore ps3 file system'.
If those don't work, you can try doing a restore OR if you know what you're doing, it's super easy and cheap to just upgrade your hard drive and get more space anyway! :) Instructions and specs you need for doing that are here: