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Here's some tips and tricks from someone that has gotten YLOD'ed twice (me). Not sure if I should make a new thread about it, so this seems good enough. Note to those wondering: this is my fourth PS3. Had a 60GB - accidentally drove over it with truck. Then another 60GB, bricked on me. Then a 40GB, but it bricked last night. Now I have a 80GB, and I'll see how long it lasts.

Locating the problem
The YLOD will pop up as a safe-guard, preventing your system from operating and thus shutting it down for you. It's often followed by a blinking red light. This is most likely either HDD, Power Supply or Core processor failure. Of course, prior to anything, if the damn thing won't turn on at all, the Power Supply is your first culprit. However, it can also be "damaged", resulting in the console initially powering up, but instantly shutting off. Move on. Remove the HDD, and start it up. Still works? Turn the console off on the back, hold down the Eject button, and flip it back on. Keep holding down the Eject button, until the fans will come on very loud. This means your Power Supply is still fully operational as well. It's then your mother board, and you're screwed unless you re-wire the processor with soldering.

Ejecting my disc
Yes, there is a chance you can still eject your disc after a YLOD. Again, flip the power off on the back of your PS3, push down on the Eject button (don't let go), and then flip it back on. Keep holding down the Eject button, until the Fan test starts. It's very loud and you can't miss it. At this time, you can eject the disc successfully. You only have about 20 seconds to do it, but should be plenty.

As of now, this method is confirmed successful on the older 40GB models, and the newer 80GB models that replaced the 40GBs. There is no 100% guarantee, but a very good chance from all the feedback spread across the internet.

Backing up your files
Of course, backing up your stuff works wonders. Sadly, there's a lot of saves that marry your system, and will not work on a new one, claiming they are illegal and not yours. There is no way around this, and a select amount of games do this. Back up your saves separately, together with completely backing up your system through the system backup tool.

De-activate your system
Make sure you call Sony to de-activate your system if you've ever activated it. It automatically activates when you make a Video store purchase, so keep this in mind. If it's activated, you can't download anything you have on a new console until it's de-activated. All your movies will be gone regardless, and you will have to re-purchase them. No refunds, nothing. This is Sony's dark side.

Known temporary CPR tricks
There are a few ways to temporary "revive" your PS3. Maybe for 5 seconds, maybe for 5 minutes, maybe even for 5 days. Regardless, you should use this time to backup everything you haven't yet, and de-activate your system manually.
Turn it on/off repeatedly. Nag it to death, or to life, if you will.
Leave it off for a few hours. It might've overheated, and will fire up again once cooled down.
Switch electrical sockets. Sometimes it might be overloaded, and if the power supply is defect, it won't react well to this.
Rattle and shake the hell out of it. This has actually worked for me once, so might as well put it in here..

Known YLOD fixes
You can buy repair kits on ebay, for about 75 dollars, but this will require soldering skills and some luck. You basically re-wire/re-route some of the chip wires, which will effectively remove the YLOD for a few months. Note: You break the factory seal with this, consequentially removing your warranty.

Power Supply gone bad - replacing it yourself
If the Power Supply has successfully been diagnosed as the problem, you can easily replace it. Buy a new Power Supply online somewhere (won't be more than $40), and start surgery. It's a simple unplug/plug system, so no technical knowledge is required. Just make sure you disconnect all power, and remove all static electricity from your body. Your cat works miracles - just poke the little bastard and unload your Infamous power. I'm not responsible for bad karma points.

PS3 Disassembly Tutorial

Sending it to Sony
Sony will send you a coffin/box to ship it in. This comes with the packaging slip, Styrofoam, etc. Pretty neat. However, make sure that you place the factory HDD in there - not your custom one (in case you've upgraded). They will not return the upgraded HDD, and will simply put another factory one in it, causing you to lose your custom HDD. However, add a note that you want the HDD and the data completely intact, and there's a chance they won't temper with it. Note that I said chance. Most likely it will come back wiped clean.

Sending it without the HDD results in a decline on Sony's part, as they then feel they cannot perform necessary maintenance, repair or fixes on said machine.. Don't ask.

u should include your source and a "Fix" for YLOD is ready POSTED!! You must login or register to view this content.

"Turn it on/off repeatedly. Nag it to death, or to life, if you will." I have no clue why, but this cracked me up! LMBO

Thanks for Good Works