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You were #3 in SC 4 ??   O_o   Impressive

Thats bullshit about the warranty not being renewed for a year.  Paying $300 in the same year to fix any console is preposterous.  I would recommend bitching to someone about this.  If you push, you can usually get something.  A buddy of mine got a years worth of live and 2 free games when his 360 RROD on him the second time.

I think you are probably right about the lemons being circulated back into the population, thats similar to what was happening in the middle stages of the 360 RROD era. Pretty lame for the consumer.

About cleaning the PS3, I just take a vacuum cleaner and stick it against the vents on the sides and clear the dust out.  Its amazing how much dust accumulates in electronics, and how much that adds to heat.  My laptop used to overheat, hitting around 80-90 Celcius.  I vacuumed it out, now runs at about 51-55 Celcius.  Those compressed air cans work, but they have a tendency to just blow dust around the inside of the device. 

If you cant sort it out with Sony, it will be a sad day for our KZ clan.  We will have a hard time replacing our designated murderer/room sweeper.

Best of luck man.