Darn, I was hoping you wouldn't say that. That's a dead PS3, no way to fix it. I mean there is a way to fix it, but you're essentially buying a new PS3 in parts and the repair is a pain in the butt. I fix PS3s and Xboxs for spare change on Craigslist. If you sent it to Sony and pay the $150, they'll tell you they might fix it, but I know from experience that they'll end up sending you a new slim. So if you went that route, you would have a new slim for half the price.
i really liked the backwards compatibility, but it seems ill be getting a slim soon *Cries*
Edit: Dinet: The reason i bought it originally, is because when i have cousins over to visit, they just sit on that and are entertained so easily, so thats A++. Until, they outgrew it... Time to save the wii until i start the babymaker.