the NAT types numbers refer to what type of firewall, if any, your modem is using, have a read of this stuff for more clarification but NAT type 1 means your ps3 is completely exposed to the internet (ie. NAT type open);
http://netnix.org/20...anding-ps3-nat/
PS3 NAT Types
In the network settings of the PS3, it uses 3 different NAT types to classify how the PS3 is connected to the Internet:
Type 1: The PS3 is sitting directly on the Internet with a public IP address. This setup doesn’t require NAT or inbound port forwarding and is used in scenarios where the PS3 is the only device wanting to use the Internet connection. This isn’t that common as most users share their Internet connection with other devices in their home.
Type 2: This is the most common and ideal type where the PS3 is sitting behind a RG that is performing NAT. The PS3 will have a private IP address which is translated to a private or public IP address by the RG.
Type 3: This usually implies you have a problem in the way the PS3 is accessing the Internet. This may be caused by a firewall or port restrictions. This isn’t ideal and will result in a sub-optimal gaming experience.
The difference between a Type 2 and Type 1 NAT is usually physical and can’t be changed by settings alone. If you have a Type 2 or higher NAT type then you are connected correctly and can have an optimal gaming experience.
In-Game NAT Types
The second type of NAT is within games like “Call of Duty: Black Ops” or “Call of Duty: Modern Warfare 2” which has 3 different classifications (“Open”, “Moderate” and “Strict”) which defines how your RG deals with inbound port forwarding and NAT. This can affect your ability to join or host games, the following matrix shows who can match with who:
Games like “Call of Duty” work on a decentralised approach where one of the players is picked as the host. The host generally requires a fast broadband connection as all the other players will connect to them. You will need an “Open” NAT type to be able to host as inbound connections are required.
Strict: You will get a “Strict” NAT type if your RG is using Port Address Translation (PAT) which is part of NAT. PAT happens when you have multiple PS3 devices sharing the same public IP address. When a PS3 attempts to connect to a host it allocates a source port for the communication – if it is the only device using this source port then NAT will use this source port as well. However, if multiple devices use the same source port then the PAT function will change the source port. This is what causes a “Strict” NAT type and can limit your ability to join games and other features like in-game chat.