There are 20g and also 40g PS3's, and the issue here isn't a malfunctioning Wireless NIC, it's that the 20g doesn't have an internal wireless NIC. Only wired.
What you want to do is take an old wireless router and upgrade the firmware on it so that it can act as a wireless bridge. There is more info here : http://www.makeuseof.com/tag/how-to-turn-an-old-router-into-a-wireless-bridge/
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