Sonys recent 2.60 firmware update for the PS3 added a new photo feature and some minor security updates, but some users are getting much more than that. Instead of fixing the console, the latest firmware update is actually destroying many users consoles and is a wide known issue.
Many people are experiencing a disc error where their console will no longer recognize discs. The issue has something to do with the firmware update "burning" out the lens. Others are having settings reset and random errors throughout the console including the photo feature crashing their system. Note that not everyone is having these issues, but it is best to probably hold off on updating until a fix is issued.
There has been an update to the original post:
We reported earlier that the version 2.60 update can cause problems with your PS3 and we are here to give helping hand. We are still awaiting another email from Sony on the issue but the problem is not as common anymore. Also remember we did state the problem is sporadic, meaning not everyone will witness the error. I have personally seen the firmware affect several consoles and had Sony tell me the issue has to deal with the update error. However after looking up more details and complaints about the problem we have come across this.
The first issue seems to be a corrupted download when a PS3 will not correctly download the update. Your best bet is to go here http://www.us.playstation.c... Follow the update instructions on the site and make sure you get 100 percent before transferring the file to your PS3. If your stuck updating with a PS3 console the only thing you can do is not disrupt the download, in other words do NOT cancel the update while the download is in process. The second issue is just the fact that technology has errors at times and this explains why Sony applies the “we are not liable for firmware damage” in the EULA. So with a bit of common sense, much of what I was lacking when I heard the news, your always at risk when updating your console. So if your PS3 is working your good to go, if its not you just don't have the luck I guess.
The problem is very sporadic throughout PS3 users but is not a huge problem anymore, so its safe to give these a try. Microsoft has had troubles with their updates and Sony has had their issues. When a radio station is talking about the issue maybe the problem is a little more wide spread than we think. If you update and get the error there is nothing you can really do, just going to have to tough it out.