my battle with getting this game to work on the ps3 has been a long and annoying one so I decided to post this information in hopes that it can help anyone who may be experiencing the same difficulties.
1. that you have a ps3 with the 60 gb hardrive
2. you need to download the ps2 system information located in the ps3 store in the games sections under game add ons.
but despite meeting these requirements it appears that the 2008 version is still having problems recognizing the hard drive. It is confirmed that people have been playing from their ps3 but apparently its through using the original game disc for the ps2 which had the playonline viewer on a seperate disc. Perhaps because the 2008 collection has everything on one disc it is unable to recognize it has a installation disc. Installation disc are apparently recognized as soon as you put them into the ps3. This will give you a system message that allows you to partition a portion of your hard drive for ps2 games.
Do not attempt to do this without being prompted to by your ps3. It is possible to partition a part of your hardrive in the main menu but doing so will format your hard drive and you will lose all saved information including memory card data for ps2 ps1 and yes your ps3 games. (which i did ; ;)
the problems with 2008 collection are believed to have occured from a lack of testing before the product was released. seeing as how the 2008 collection was meant to bring new players into vanadiel, and seeing as there is no way to get a hard drive for your ps2 anymore, it is believed that the game was intended for your ps3, thus a solution to this problem is likely on its way.
when I got in contact with live help from playonline they said it was a sony problem and gave me the number 1800 345 sony.
If anyone has any information that may help with this situation or any that can correct what I've posted please reply to this post. As soon as I get more information I'll update myself