So you have a AT90USB162 but no real clue how to use it? That's me, a week prior to writing this.
Step one, Flashing it with a Hex
First, you're going to want ATMEL Flip. Install the appropriate version for your PC. I used the top one and you probably will too.
Next, hook up your AT90USB162 to your PC. Reset it to original settings. On my chip this is done by holding down the HWD button while hitting reset. After you hit the reset button, release the HWD button and you're back to basic settings.
After you've done this, your computer will have new hardware. Select a location to install drivers. For me, the drivers were at: C:\Program Files\Atmel\Flip 3.4.2\usb
If you need this tutorial, they probably will be for you too.
Your PC should recognize your AT90USB162 now. So start up Flip. Select the the first icon on the left hand side(the mouse over reads: Select a Target Device) and select your AT90USB162.
Next, select the icon immediately next to it and open the connection.
Then, click on the red arrow pointing to the book page (mouse over reads: Load a Hex File). Select a hex file. At this time of writing, you should be using Hermes V4 for AT90USB162
After you've selected it, hit the run button at the bottom left. All the lights on the left hand sign should go green. Then, click on 'start application'. Step 1 complete.
Step Two, Package Files
Get a regular USB Flash Drive / Pen Drive / Jump Drive. Whatever your favourite term is. Doesn't have to be big.
Plug it in, go to my computer, right click, format to FAT32. You'll lose all your data. Then, dump your package files onto it.
If you're reading this, you're probably going to be running all your legal backups. I useopen manager.
Also on your USB drive you should put [url = http://www.ps3-hacks.com/file/120]Comegenie's Awesome File Manager[/url].
Safely Remove Hardware and your USB drive has what it needs.
Step Three, using your AT90USB162
Insert a disk into your PS3, then shut it off, remove the power cable. Plug in your AT90USB162 and then the power cable. Turn on your PS3 and within 200ms after hitting the power button, hit the eject disk. The PS3 will take a while to load but when it finally does, you'll have two new options on your Game submenu. Namely "Install Package Files" and "PS3_Apps/Games".
Plug in your USB Drive. Install Open Manager and Comgenie's Awesome File Manager.
Step Four, using a Backup Manager
After you've installed Backup Manager, go down to it in the game submenu and open it. You can use it to create your backups. Make one and select it. Your PS3 will look like it's about to run the game before 'crashing' to the main menu. Open up PS3_Apps/GAMES. Your game should install and then launch. Bravo.
Optional Step Five, broken Blu Ray
So, like me, you have a broken Blu Ray drive and found it more sensible to pay $40 for an AT90USB162 than $150 for SOny to repair it. Well, after you've gotten your Blu Ray backup on your PC via whatever means you use. The backup will be a folder with the data in it. Not an iso, not any other format. Just the folder with the files. Install the PC version of Comgenie's Awesome File Manager and select your backup folder. Next, put said backup folder on a USB large enough to hold it. You can make seperate trips but it must be able to hold 4+gigs.
Put the USB driver in your PS3 and open up the PS3 version of Comgenie's Awesome File Manager. Transfer the files from your USB to Game/LAUN12345/GAMEZ/. Comgenie will piece the 4 gig parts back together. Doubleback to option 4.
I actually meant to hit preview. Oops. Anyway, here it is. If there are any corrections to be made, please inform me. If you have any questions, I probably lack the knowledge to answer them.