This is a motherboard fault, this link shows you the repair but some electrical and soldering knowledge is needed. Would only attempt if you have that knowledge.
http://playstationlifestyle.net/forums/showthread.php?t=2376
This is called the yellow light of death...you can find a fix on google or youtube..just type in...ylod sollutions....when buyin ps3 i recommend paying extra for the lifetime warranty
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