As someone (probably op) said earlier in the thread this is infact not a CFW issue this is a hardware/software issue it basically means something messed up royally inside that the software update cant fix example: nand or something similar
Ive seen people talking about this in the past its known as the Red Screen of Death (RSOD)
This is the oldest topic ive found referring to the screen (
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It might be fixable yourself if you know what your doing with the insides of the ps3 like flashing the nand, if not then your kinda SOL
Sorry for the bad news but maybe you can look into it more than I did, just google 'ps3 red screen of death' you should be able to sift through and maybe find something.
Hope it helps, goodluck