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this si called the RLOD or the red light od death and is caused by the following
2.your hardrive is corrupted or needs to be reset into the system
3. the soldering on the motherboard needs to be reflowed and can be repaired at any local repair shop tha tspecializes in the PS3 gaming console
Generally there are a couple of things that can cause this. Bad installs of games, and more commonly thermal damage. The bad news is it will probably have to be repaired and Sony generally charges about $150 for that. Hopefully its under warranty? =)
There is some talk that the new firmware download may have altered physical parts that control the temperature inside the unit. Although that's just heresay i've been hearing more and more people thinking this is the case.