It appears that PS3 owners with an upgraded 1TB hard drive are having issues with the recently released System Update 4.45.

Details after the jump.

Posters across the internet from websites like N4G and PlayStationLifeStyle.net are reporting issues with the latest firmware release and the common item amongst them is a 3rd party hard drive that is 1TB in size. While our gaming console is only blessed with a 500GB hard drive, we can only report on what the 1TB owners are saying.

The Official PlayStation Forums are abuzz as well.

Some have suggested restoring the file system or updating again via Safemode, while others have had to allow the PS3 to completely reformat their hard drive. You’ll lose all of your downloads and save data so that might not be your best option. PlayStation Plus owners will at least have game saves in the cloud, so there’s a plus for them.

If your PS3 is stuck on the wavy screen, there have been reports of users unplugging the PS3 from the wall, then restarting the machine normally with no issues.

Hopefully this issue will be resolved quickly by Sony.