NAT type 1 means that there isn't a firewall involved, if you had at least a /30 then you would be able to get NAT type 1 with a router. You most likely have a single IP which means you would need to directly connect the PS3 to a modem to get NAT type 1.
NAT type 1 won't make your connection any better, it just means all the ports are open to the internet, what that means for you is that it will fix any problems connecting to other people. NAT type 2 is ideal, the ports can be opened either manually or automatically depending on the router. A DD-WRT compatible router would be ideal if you wanted a router that has flawless UPnP (ports being opened automatically for you on the fly).
Broadband Package: Sky Fibre Unlimited Pro
Router: Buffalo WZR-HP-G300NH