Hello.
From the error code you provided, it appears that your update has corrupted during the installation process, most likely due to fragmented data in the update stream. This can happen from time to time, especially when performing an on-line update over a wireless (E.G. Wi-Fi) connection.
If you can get to the XMB, you can try changing your system settings to disable the media server connection and plugging an ethernet cable into the back to update via wired connection. However, if you cannot access the XMB menu at all, and are getting dropped into the update screen automatically, then the above method will do you no good.
Depending on the firmware version on your Playstation 3, you may have access to the recovery menu. To access it, turn off your PS3, and hold the power button until you hear three consecutive beeps, the recovery menu will come up, and you can choose from the available options to attempt to recover your corrupted system.
If the system turns itself off again when holding the power button, your firmware does not support the recovery menu, and you will need to ship your system back to sony to be repaired.
I'm sorry to hear of your misfortune; I myself have a ps3 which is out of commission, and it is indeed a very sad affair.
I hope this helps you in some way.
Sincerely,
Frankie.
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