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The first time you select 'folding@home' it will prompt you to download the software, which, since you are reading this, you will do ;). Agree to the license agreement, and then 'view current simulation". Hit the triangle to bring up Options, go to Identity, then change donor name to something of your choosing, and then "Join existing team", which is '4'.
September 20, 2008 Update from leibold :
After upgrading the Playstation 3, the option to install or run F@H is now called "Live with Playstation". After installing and running "Live with Playstation" the software will be in the "Live" channel where it shows the news and weather from around the globe while F@H is running in the background. In order to set your user and team information you first need to switch to the "Folding@Home" channel by pressing and holding the pink square button and selecting the F@H icon. The "Folding@Home" channel looks like the earlier F@H client on the PS3 did. While within the "Folding@Home" channel press the green triangle to bring up the settings menu. Avoid the temptation of the "Configuration" option and instead select "Current Channel". In this submenu select "Identity" to set your chosen username and then "Join existing team" to join Team Helix by entering team number 4.