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Just as a guess, it sounds like the hard drive might be dead. If you have another 2.5" SATA hard drive, you could try it in your PS3. To swap out the hard drive, look at the bottom of the console, and right next to the warranty label, you'll see a little door that you can pull open with your fingernail. Open it, and you'll see a little blue screw. Just unscrew that, and put the screw somewhere for safe keeping. With the screw removed, you can now pull the hard drive out from the bottom right of the front of the console, unscrew it from its chassis, and place the new one in and put everything back together. Once you turn on your PS3, you should get the error again, but let it restart, and everything should be fine.
It could be a failing hard drive...Try to remove the hard drive from the system and restart it without the hard drive if you can at least get to the main menu then it is your hard drive that is causing the problem.
the drive is plug in play, disconnect the drive, then turn on the console. Plug in the drive, the console should restart and it should be found. if it restarts but the drive is not found then the drive is either faulty or it has been editted somehow and no longer contains what is required for it to work on xbox.
You may use USB memory stick as a hard drive / memory device, just update to the latest version of software and you can use any usb stick up to 16GB with the console. this will be cheaper than buying a new drive.
Please let me know if you require further assistance or if you have any questions. Thanks, Ekse
Remove the hard drive and turn it on with it out. Put the Hard drive back in and restart it. If this does not help it could be bigger problems. I would try to get a different Hard Drive to try. Some Laptop hard drives will work as long as they are SATA conector type. Good Luck.
E68: Hard Drive Error... It could be a problem with the Hard Drive itself or a problem with the internal connection to the hard drive, Try removing the hard drive and playing without it, This can also be caused by a Hard Drive Eprom Error. Some also believe this might be caused by a problem with the fans.
If this doesnt solve the problem, then contact xbox customer support.