I have a FAT32 USB drive formatted, I created a folder (PS3)and inside the ps3 folder I created another folder (GAMES). is this the right way to make a folder to access a game on ps3 HEN, if not kindly help me.
You need to create a folder named PS3, inside it create another folder named UPDATE and put the HFW file there, rename it to PS3UPDAT.PUP if needed. The file name, as well as directory names, must be all caps. Then install the HFW like any other firmware update.
After you're on HFW you'll need to open the browser and go to the HEN installer URL. After the initial installation you'll have a new menu item in XMB called "Enable HEN", as well as a pkg installer.
All of the above has to be done only once, however you'll need to click the "Enable HEN" icon after each restart. When you select it you'll see a small message indicating that HEN is now enabled (there's a small chance that it may crash, in which case just restart the console and try again). After HEN is enabled you can install and run homebrew.
To install pkg just put the pkg file in the root directory of a FAT32-formatted USB disk and use the pkg installer to install it. It'll appear in XMB like a digitally-purchased game. While this works for most homebrew, you cannot install games larger than 4GB that way due to file size restrictions of the FAT32 file system.
When you first install HEN you should immediately install multiMAN and webMAN MOD (restart your console and re-enable HEN after you install it).
To copy a game from an original disc to the PS3's internal HDD launch multiMAN, then insert the disc, go to the games tab and click refresh (the first option). Your new game should appear. Highlight it, then press triangle and select either copy (if you want it in a JB folder format) or create ISO (if you want it as a single ISO file). Copying can take a few minutes to over an hour, depending on the game size. After it's done copying it you can eject the disc.