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Here is a trick / tutorial to UNBRICK your PS3
Fix 1: Replace the Hard Drive so the ps3 will boot the last firmware you were on. (Firmware was never updated) Then the ps3 will ask you to format it so do so
Fix 2: (You will lose all game saves) If you don't have two hard drives you could always hook the hard drive up to your computer and reformat it. Then put back into your ps3 and the ps3 will ask you to format it.
Format it with your PC, then place it back into the PS3. The PS3 will now recognize the hard drive, but won't be able to use the format you have on it, but at this point the PS3 will let you reformat the drive
Make sure you don't just format the old drive. You have to get rid of the old partition entirely
Preparation
Formatting a Secondary Hard Drive
-Right-Click on the "My Computer" icon either on your desktop or in the Start Menu and select "Manage."
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A new window titled "Computer Management" comes up. Select "Storage" from the left hand side by clicking it once, then select "Disk Management(local)" from the right side by double-clicking it
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Now in the lower part of the main frame (right side) of the window you should see a nice visual of all your hard drives. Each line is a different drive. Each box on a line (with a colored bar at the top and a size displayed in MB or GB) is a partition on the drive. Partitions are separations of space on a drive. Unless you are doing something specific that requires multiple partitions, you only want one partition per drive
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First you must delete any existing partitions on the drive you are going to format. Do this by right-clicking on the partition's box and selecting "Delete Partition..." Since you already know that you will be deleting everything on the drive, and have already backed everything up, you can safely say yes to any warning the computer presents you with.
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If there are multiple partitions make sure you have saved everything off them since they might each have different drive letters (i.e. "

" or "F:"). Then repeat the above step for each of them. If you only want to format one partition that is OK and you can continue to the next step without deleting the other partitions.
-The box for the drive to be formatted should now have a black bar at the top of it and should say "Unallocated" under its size (see picture). Right click on it and select "New Partition..." The New Partition Wizard comes up.
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In the New Partition Wizard click next. On the next page make sure "Primary Partition" is selected and click next. Now make the size equal to the maximum (it should already be set to it), and click next again. On the next page the computer will automatically choose the first available drive letter for the new drive. However, if you like you can choose another drive letter from the drop-down menu, and then click next.
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Finally the New Partition Wizard asks if you would like to format the new partition and if so what format. Choose "NTFS" as it is faster and more secure. Leave the "Allocation unit size" as "Default." In the "Volume label" field enter whatever name you want the drive to have. Simple is better. Avoid using spaces. Lastly, if the drive is brand new and has never been used before check the "Perform a quick format" box. If the drive has been used before leave this box unchecked. Leave the "Enable file and folder compression" box unchecked and click next. Then on the next page click finish.
-The wizard will now spend a little while formatting the drive. On old or large drives this may take a while. Do not close the "Computer Management" window until it finishes. You will know it is done when the word under the size of the drive changes from "Formatting" to "Healthy" and the name and drive letter you chose for the new drive show up. After it is finished you can proceed to use your newly formatted drive.
BD Drive - Service Manual (1st Edition) ---
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60GB PS3 - Service Manual (3rd Edition) ---
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60GB, 80GB PS3 - Service Manual (5th Edition) ---
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SEM PS3 - Service Manual (2nd Edition) ---
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for those who don't know what exactly it is I have posted here, it is Sony's unreleased service manuals for the PS3 systems (for the technical stuff inside).
*** Also, if this has been posted elsewhere, and I just haven't seen it, or its against the forum rules, please feel free to deleted it right away, I will understand why.
ALL FAT 256MB NAND PS3's get their NAND Wiped / Erased during a downgrade.
This has always been the case on Phat PS3 with a 256MB NAND.
Nothing has changed with all current downgraders to date and its still the main problem.