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most power supplies deaths are accompanied with a pop, but its nothing that you need a new ps3 for, you can probably just buy another power supply (looking on ebay they run from about 5-25$) and replace the one in your ps3 (i would make sure that i got a power supply from the same model ps3 that i was repairing)

if you do decide to just replace the psu, do keep in mind that opening the ps3 will void the warranty.

i just went and looked on youtube ( http://www.youtube.com/watch?v=NKmg7e7ufJM ), and found a video of someone replacing a psu, its about 5 mins long, he unscrews like 5-10 screws, and unplugs 2 things then puts it all back together

better than throwing it away i guess...