System Update
Software updates may include security patches, new or revised settings and features and other items, which will change your current operating system. It is recommended that you always maintain your system to use the latest version of the system software.
There are two ways to update as listed below:
Update via Internet
Update via Storage Media
Notices
Do not turn off the system or remove media during an update. If an update is cancelled before completion, the system software may become damaged, and the system may require servicing or exchange.
During an update, the power button on the system front and the PS button on the wireless controller are not active.
Depending on the content, you may not be able to play without first updating the system software.
Update via Internet
Download the update data directly to the system from the Internet. The latest update is automatically downloaded.
1.
Select (Settings) > (System Update).

2.
Select [Update via Internet].
Download the latest update data from the Internet. Follow the on-screen instructions to complete the operation.
Update via Storage Media
Use update data saved on a disc, Memory Stick™ or other media. Download the update data from a Web site using a PC. For more information, visit the SCE Web site for your region.
Hints
Update data may also be contained in some game discs, commercially available BD video software, and other types of disc media. When you play a disc that contains update data, a screen will be displayed to guide you through the update process. Follow the on-screen instructions to perform the update.
An appropriate USB adaptor (not included) is required to use storage media with some models of the PS3™ system.

After updating can it still be hack able.

emmchi:
After updating can it still be hack able.

oga if your ps3 is jailbteaked better search for cfw version. I have it on my pc though haven't seen the need to update yet until multiman supports it