Hi M8,
The reason for this as I suspected is because that PS3 is running firmware version 2.43, the Install Other OS option is in the system settings menu.
When I did mine it was as simple as that video and that was about 2 years ago I'd say, when I did AndyRST of here's PS3 about a year ago, when I put the new drive in and switched it on it said it couldn't find the firmware. I had to use his laptop, get onto google and find out what to do. You'll need to go to here
http://uk.playstation.com/ps3/suppor...28ver-3-60%29/
And download it onto a usb drive following these instructions :
http://us.playstation.com/support/sy...ps3/pc_update/
Have the usb drive plugged into the PS3 and switch it on with the new drive on.
Oh, and never turn a ps3 off at the switch on the back unless it's properly crashed otherwise you'll fuck it a goodun.
Any probs m8 give me a shout