It is not a beeping, blinking red light. The system beeped while I was playing MGS4, then the light started flashing red. Now, when I push the power button after the initial beep there is a sequence of 3 beeps and the green light (from the power on) shuts off and the system flashes the red light. I just spoke w/a CSR who stated they will be sending me a mailer to ship the system back in wich should arrive in 3-5 business days. He asked about the lights, the system serial in the back and if anything was blocking the fan.
I have no reason to lie, I'm a Sony shareholder (position is long, not short) which I took up the day after Warner Brothers announced BR exclusivity. I'm just pissed that this happened on a BRAND NEW 13 day system, especially as one of the reasons I chose the PS3 over the 360 (I already have a Wii) is the supposedly superior manufacturing of the PS3...as in there is no RROD issue. Additionally I'm pissed because I'm like 1/3 of the way through the 2nd act in MGS4 and am now going without it for up to a month until I get my system back. Plus the rep told me I'd have to be here to sign for the mailer, yes to sign for an empty box. Although my instincts tell me UPS will leave a pickup slip allowing me to pick it up at their local facility.
Oh and BTW anyone nitpicking my emotions towards Sony is a fanboy. I would be pissed at WHATEVER company shipped me some $500 piece of equipment that didn't work after less than 2 weeks. I am also less forgiving as this is not a launch day system--the PS3 has now been out for about 18 months!