Well, I had some major problems with my PS3 recently locking up and not playing any games or movies. After calling Customer Support, they suggested that I do a hard reset. This did seem to solve my problems, so here is the procedure per Sony CS. I would consider this a last resort troubleshooting procedure.
Hard Reset procedure for the PS3 (as instructed by Sony CS).
Be sure to backup your settings/games saves by doing a System > Backup on your PS3 or you may lose your game saves! Also, this is a last resort procedure prior to exchanging/returning to sony.
1. Power Off the PS3 via the power switch in back and power back on w/switch.
2. Hold Power Button on the Front until you hear 3 beeps.
3. Then go through the initial setup and then run a full Format via System > Format. (will take approx 3 1/1 hours). You may need to have our AV cables ready if your using HDMI (in case HDMI isn’t detected after initial reset).
4. Restore your backup you made prior to doing factory/hard reset (optional, if you created a backup).
Hopefully this will solve your freezing problems.
Problems/symptons that this appears to have resolved:
-freezing when doing anything
-no harddrive activity
-freezing when trying to use onboard keyboard or bringing up keyboard
-game/movie disc freezes system
(Video of my problems prior to hard reset)
Prior to doing the hard reset i had tried the following things:
-restoring my PS3 system and a quick format (did nothing, via System menu)
-full format (no hard reset though, via System menu)
-restore default PS3 settings (via System menu)