Tales of Losing a System (And finding games don't work)

I know that having a console die isn't a rare thing on the internet but this is a new thing to me. After a couple years of hard service to my gaming habits PS3 has gotten the Yellow Light of Death. Does not roll off the tounge like Red Ring of Death but it is still just as deadly. It happened right in the middle of finishing the final level of Katamari Forever. With a whole bunch of internet searching it seems that there is no way to redeem my save files unless I can somehow fix it myself or the PS3 works again magically. 
 
Now I am at a crossroads of either getting a slim or paying to get my system refurbished. On the one hand I spend 300 dollars and get a brand new system that concerves more energy, or I get a refurbished 60 gig and still be able to play PS2 games and have infinite memory cards. Its a tought decision but until I make it my Katamari Forever disk is stuck in my Playstation.... T_T. Its been a shitty weekend for gaming.
 
While my PS3 is out of commision I have been playing some of the many PS2 games I have gotten on the cheap just to see that they don't work. First off is Ico which is a huge bummer because I want to play that game so bad. Second is Bully, also a bummer because I have heard nothing but good things about that game. Last is Sly Cooper 3 and it freezes after the first level and loading the second one.
 
So all in all its back to roaming aimlessly in Guild Wars. T_T I wish I had my PS3 to play the Lost Planet and Ninja Gaiden 2 Sigma demos.
 
PS: If the pics are true and T.Hawk is in SF4.... it is going to suck balls because T.Hawk is super lame.