First off, make sure you haven't updated your PS3 to 3.42, must be 3.41.
Secondly, you're going to need PSGroove for Motorola Droid. (Google is your friend)
Your phone has to be rooted in order for this to work properly.
Tested working with:
Motorola Droid running a compatible ROM (check list below)
-CyanogenMod 6.0 ***** This tutorial is based off this ROM
-Froyo Kangerade V4.0.7
-Lithium Mod 1.0.12
*Shortest Micro-B USB Cable possible* (Important)
Android 2.0+ SDK for ADB tool ( http://developer.android.com/sdk/index.html
First and foremost, make sure you have at the minimum SPRecovery installed. (again, google is your friend)
Any other ROM manager _should_ be sufficient, however I haven't tested personally.
Boot into recovery mode and backup your current ROM. ( Power on and hold x )
Download Android SDK, unzip to easy location to access via command prompt (C:\ for example)
You do not have to install the SDK Manager, you just need to ADB - Android Debug Bridge, which is located in the tools directory.
Once you have downloaded PSGroove for Motorola Droid, I also recommend you extract boot.img and psgroove.ko to an easy location (C:\).
You're going to want to stay in recovery mode and mount /data/ and /sdcard/ under Mount Options.
Reboot your phone, make sure USB debug mode is enabled and once more boot into recovery mode.
Run cmd.exe from start menu, type 'cd C:\android-sdk-windows\tools'
You should see this directory now and type 'adb devices'
This will show you your droids Serial Number.
These steps have to be followed exactly to work properly.
The following commands will be entered in the command prompt. (Without ' of course)
'adb -d push c:\boot.img /sdcard/'
'adb -d push c:\psfreedom.ko /data/'
'adb -d shell'
'flash_image boot.img boot'
You should receive notice that your device was flashed.
Now type 'exit' and 'exit' again. You can now close the command prompt window.
Reboot your droid regularly into the droid OS, run Terminal Emulator.
You'll see what the last portion of adb looked like just a '#'.
From here, you will want to type 'su'
You will not get any notification that it worked, if you received errors such as permission denied, make sure you typed 'su', if you get an error that it already exists, you are ready to begin what others call the normal PSGroove process.
Turn the switch off in the back of your Playstation 3 (FAT) or unplug the power cord. (SLIM)
Then plug in your device and plug in the power cord of the PS3 (SLIM) or flip the switch back on. (FAT)
Once you have that done, quickly press the power then immediately after press the eject button (as fast as you can).
You will know it work when it takes a slightly longer time (about 5 seconds more) to turn on.
The PS3 should boot up and you will see two new options in the games portion of the XMB (cross media bar).
From here, you are ready to install Homebrew applications!
You can now safely disconnect your device and return it to normal operation mode while enjoying this exploit.
If you receive errors about an unknown device being plugged into your PS3, make sure you are hitting eject and also, due to timing issues, you might have to try this a couple times (power off (unplug/switch) and hitting power button then eject quickly. My first time, it took me nearly 7 tries to get the "timing right". Also, users are reporting more success with a shorter cable, I couldn't get my 6ft to work at all, whereas my 3ft had no issues.
Some content was borrowed from PSFreedom's wiki, located at http://psfreedom.com/wiki/Motorola_Droid
I wasn't able to get their easy install from .zip method to work, so I made my own method of getting around this. Please leave some feedback, as there are alot of Droid users that are continuely having issues around being able to 'JailBreak' their PS3.