I've already upgraded mine from a 40GB to a 640GB, so I should be of help.
Except I didn't have a large external HHD. I had an old USB hanging about which I use to back up my saves, and I manually saved each saved data to it. And then put it back on when I had the new HDD installed. You're doing it the quicker way, which is just as good.
Question 1: Is the PS1 Memory Card data backed up? I have put in a lot of hours on all the games and REALLY don't want to lose that.
I'm pretty sure it is. If you're in any kind of doubt, just do it manually. I'm like 90% sure.
Question 2: With the Game Data Utility, can you back that up? And also, if you can't back it up, is it just a case of reinstalling the data and not losing any game progress what so ever?
Just remember that you don't need to back up the Game Data Utility as you can reinstall your games whenever. All you want and need is the stuff in the Saved Data Utility. It doesn't hurt.
Question 3: Are PSN account details and Trophies affected? And if they are, how do I restore them?
No, not at all. What you will need to do is download the latest PS3 Update from the Playstation website, and have it handy to install when you turn the PS3 with the new HDD in it for the first time. I literally (or not) crapped my pants at this point because the guide I was following didn't mention that, and I was wondering why I was getting a message about my HDD. xD
Once it's finished formatting and installing the update data, sign in with your PSN, and all of your trophies will download back onto the system. This part takes a little while.
The whole process takes a while. Best to save yourself a few hours to get it ready. Don't forget to ground yourself, and have a good screwdriver set with you. Don't panic if a screwdriver is too tight and won't come off - just try another screwdriver.
EDIT: BACK UP LBP IN THE GAME DATA UTILITY!!! For some reason, the saves got moved there instead. Whoever thought of that was bloody stupid. =/
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