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Folding at home is the most processor intensive thing you can run on your PS3, and I leave my PS3 on for days running it. Doesn't even get hot, in fact the TV is hotter (dad has one of those laser thermometers). I don't know how they did it, but that PS3 is a cooling beast.
Basically, Folding @ Home does calculations relating to the folding of proteins, each work unit is only actually processing a few milliseconds of the folding, but it usually takes like 8 hours to do so. You can see why they need every bit of processing power they can get. The research has a wide array of benifits, it's just a general purpose project in which we can apply the knowledge we learn to just about anything, whether it be curing cancer, fighting AIDS, or just any wide variety of minor medical issues.
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