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YLOD. Good friend of mine gave me his Fat PS3 (CECHH-01) and said it had the YLOD. He had taken it apart, but didn't have a heat gun to re-flow the solder and had already gotten a newer slim PS3.
The repair was very easy to do. My experience working on computers, both as a hobby and a profession, certainly came in handy. We followed the guide exactly and watched the video with the (rather cute) narrator as she guided us on how to perform the repair. We took our time to heat up the entire motherboard as evenly as possible, and then flowed the solder. We allowed about 25-30 minutes for it to cool. After that, we put everything back together and now I have a working PS3 for $50!!!
TAKE YOUR TIME. Seriously, don't do this 15 minutes before work. My personal advice is to label and tape all your screws to a piece of paper. I took my PS3 apart during the first week I got it, but didn't repair it until two weeks later (because shipping was really, really slow). Labeling out all the screws, in the exact orientation I needed to put them back together, made life so much easier.
I used the box that the heat gun came in to balance the PS3 Mobo on. The video guide uses a newer model so you may need to adjust your process, or iFixIt could include videos for the few different models. My MoBo features a ribbon that connects to the wireless board on the bottom side of the board, so it hung off the edge of the box perfectly and was evenly balanced.
Also, don't panic when you put the thermal paste on. I was very nervous, but it's the same as spackling drywall. You will end up using more than you expect because the pea-sized drop the guide tells you to use will not cover the entire chip.
My friend who was helping me forgot to take the cover off the thermal pads, but my PS3 hasn't blown up yet so I guess everything is ok!! Make sure you take the strip covering the adhesive off BOTH sides before reassembling!