Make a copy of charles-proxy-ssl-proxying-certificate.crt (C:\Program Files\Charles\doc) and rename it to CA24.cer (make sure you change the .crt to .cer or it won't work)
Copy the included .pkg file (AsbestOS) (I have included the new freeflash for 3.55 if you don't want to use AsbestOS) AND the above CA24.cer to your USB drive.
Install the pkg file on the PS3 as you would any other package and then run the AsbestOS Installer. The installer will take a while (5 mins+ for me) and it WILL fail, it's fine.
Open your favorite file manager and copy the CA24.cer to /dev_rwflash/data/cert (remember to make a backup of the original!)
Reboot your PS3.
2. Download and install Charles
Copy the included charles.config to your profiles app-data path. For Windows 7 it is C:\Users\xxxx\AppData\Roaming\Charles (you may need to make the folder, start charles and then close charles then copy the .config back) and for Windows XP it will be C:\Documents and Settings\User\(Local?) Application Data\Charles or C:\Program Files\Charles
Start Charles.
3. Setup your DNS/Update List
Open PS3DNS.exe included in the zip file and select your region
Set the PS3's PRIMARY DNS server to your PC's IP address
Set the PS3's SECONDARY DNS server to your actual DNS server (e.g. router) or use google DNS which is 8.8.8.8
Copy the ps3-updatelist.txt to the root of your C:\ drive - my file is for US update list
4. Login to PSN and enjoy!
Notes: you do NOT need to set the proxy option on the PS3. You MUST keep PS3DNS.exe and Charles.exe on your pc at all times to sign in and play online.
5. Notes
After you install the cert you reboot ur ps3 then you run PS3DNS and type ur country code then you run charles (i had to edit my settings under tools -->map local and change the *01.ps3.update.playstation.net and (/update/ps3/list/*/ps3-updatelist.txt to /update/ps3/list/us/ps3-updatelist.txt) fus01.ps3.update.playstation.net because im in the usa i also add to change the *01.ps3... under proxy -->resverse proxy and also under proxy-->proxy settings -->ssl tab make sure you edit the ps3-updatelist.txt to reflect one from you country then put it on the root of c:/) then after that i set my ps3 up as follows (i have linksys router):
ip address: 192.168.1.105
subnet mask: 255.255.255.0
defualt router: 192.168.1.1
primary DNS (MY PCS IP ADDRESS IP4 if using win vista or 7): 192.168.1.100
secondary DNS (any DNS SERVER YOU CAN USE, I use google's and haven't had a problem yet) 8.8.8.8
Both the PS3DNS and charles are running on my pc i have noticed charles will sometimes pop up and say allow connection from 192.168.1.105 which is my ps3 i hit allow then my connection test will go through.
NOTE if you get any error such as sign out or error while signing in just sign in again i've notice the PS3DNS will glitch sometimes and not redirect right.