I just wanted to post some help for people having issues with Update loops. This is when you try to update and get to around 98%. The system ends up rebooting or asking you to restart. Sometimes you may be told to use "Safe Mode"- which you cant because your stuck in the loop. I have found that in most cases this is cause by corrupted files on the drive or by a bad drive. When the system shuts down abruptly it sometimes corrupts files or the drive itself.
1. I tried the disconnect battery trick and found that it hasn't helped. You may want to try this first, but it requires you to open up your PS3. Just be careful when you pull the battery clip. Those wires are tiny and could rip easily. I have also had the whole clip come off the motherboard (you should be able to slide back on). Keep the battery disconnected for at least 40 seconds, then reconnect.
2a. Next step is to either format your hard drive with a PC, or get a second drive. People that want to try to keep their info will most likely need to get a second hard drive.
2b. Place you second hard drive or formatted drive in the system and boot up your PS3. You should have no problems with your update. If you do have an issue with your formatted drive, there may be an issue with the drive and you'll have to check with a confirmed working Drive.
I will post a way to recover files from the drive next, I'm not sure if what I'm going to try will work or not so I will post what steps I did either way after trying to recover the disk. If anyone knows of a good way to recover files off the drive through PC or another method please reply.