I'm getting a PS3 for Christmas, and have been looking at a few comments about it crashing and so was wondering would the best thing to do when I connect it all up be to get it onto the internet and install all the updates first, or to install them one at a time and try it after each update.

I'm getting the 80gb UK version, so dont know if there is as many outstanding issues with them as some of the very earlier versions of the console.

2 of my friends had problems with their 60GB. The new SKUs seem to be a bit more reliable and besides, you can always send it back to Sony if there's a problem, free of charge.

The PS3 is pretty reliable. I wouldn't worry too much about issues with the updates.  However, if you are worried about updating the normal way, you can always download the firmware updates on your PC (and transfer them to your PS3), as listed on Sony's site:
http://www.us.playstation.com/PS3/About/SystemUpdate/pc_update.html#update_PC

I just use the normal updates myself, but this is an option for those of you who wish to use it.

Mine crashed four times last night. But I pulled it out away from the wall and it's not crashed since.

Before that I have had no trouble.

Mine has never crashed and I have a launch 60GB.