You probably need a firmware update. Use an ethernet cable instead or doing it wirelessly (I think the 60 gig version only has wireless 'net connection.) Hopefully, you'll be able to update everything so everything will run smoothly. And yes, you should be able to play just you against the console.*

*That's what my kid says. How a 10 yr. old stays on top of this stuff is beyond me, but remember I said my kid said the PS3 was buggy also. Have fun.