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I do hear that the controller card on that revision of PS3 can have failure issues... right now I'm waiting on a new bluray drive assembly for a CECHE01 because of, basically, the very same problem. This eBay seller(lives on the other side of the US from me) seems to know a good bit about these issues, and even provides his phone number for tech support. Search under his store for: CECHE01
The Blu Ray Diode fried when you shut the power switch on in the back. The PS3 uses 2 different lasers to read disks. One for standard dvd's and cd's and one for Blu Ray. The only way to fix your PS3 is to replace the Blue Ray Diode or laser lens. I would recommend paying the $150 bucks to have sony replace unless you know something about Diodes and lasers. If you hold down the eject button for 10 seconds it will reset your laser and then you should be able to shut the power down in back safetly. Formatting and or resetting the hard drive won't do a thing if your diode is fried. I found a work-around to get it to read discs though. You have to have a bluray disc in the drive (game or movie) and start a downloaded game or Playstation Home. Once the game or Home loads, hit the PS button on the controller. The crossbar menu will pull up and you will notice the disc icon will (magically) pop up. Click the quit game icon. Once you are out of the downloaded game or Home the disc icon will still be there. You can then load the game or disc. The icon will remain there until you eject the disc, so you will have to repeat this every time you want to load a game. Check What Resolution You Have Saved On the PS3 Maybe When It goes Blu-Ray Its To High Res For The Standard TV..
if you felt i have spent my time to help you... a very helpful rating is appreciated for answering ur query...