They should cover the repair, just complain at them until they offer a remedy. It was their rushed buggy update that created your problem. Nothing was wrong with your PS3 before the update. If you don't have any further questions please choose an answer and close the thread, but feel free to post back in CFW/MFW with your result.
1- download the 3.56 update (the one that don't have "Fixed" after it)
2- put the update file on the flash drive in this directory X:\PS3\UPDATE\PS3UPDAT.PUP
3- Swap hdds (replace the hdd in the mule with the one in the offed)
4- plug the flash drive in the mule and install the update
5- after installation verify that the system is working (on the mule)
6- Swap hdds again(this time put them in the original ps3's)
7- run the offed and if it still showing the same message try installing the update on the offed or press home button
8- if it all worked go to system update and update (it will install the 3.56v2) to get it safe
9- enjoy and remember after i am an a member i'll make hacks and jailbreaks
How does swapping the HD help you? Turning on a PS3 with another's HD is only going to take you to the HD recovery/format menu, not the XMB. So I'm not sure how you would get this to work, please clarify.
I have not done this myself, but I know you can update from CD, have you looked it to trying it that way? Hope this may help.
I forgot to add, the reason I thought this was, because you are unable to use the new hard drive is it likely the is a bug that affects the usb drives or hub as well ? going on the assumption Sony are trying to strap down the usb ports unlike the bdvd.
just a thought.
Last edited by daveshooter; 03-08-2011 at 08:39 PMReason: Automerged Doublepost