Thanks a lot for your answers bitsbubba and severusx...
bitsbubba, I tried the Factory/Service Mode, but when I put the 3.41 pup file and the Lv2diag.self File 1 on the USB and start up the PS3, it does not boot up... I waited for 30 mins, the green light just flashes and does nothing. when I stopped it and rebooted the PS3, it still had the modified 3.41 fw. Retried the update from XMB, Error: Data is corrupt... I am soo stuck, man.
Please help me get out of this as I am missing out on a lot of games.
severusx: I have downloaded it and have in total 5 pup files but same error... I tried the Recovery mode as well, tried system update but it did not work, said it could not find the 3.56 fw... can you please tell me if i am doing somthing wrong, I have no issues in starting over again, formatting the HDD, I am open to it... please help, mate... thanks again.