If you can get this one to work, you'd be a little bit loco for not doing this, but it sounds like most are having trouble with that first part.
For a $160 credit, I'd buy another PS3 in a heartbeat though.
All I've been waiting for is another revised model with what will hopefully be a $199 MSRP. If I can pick up a current model for under $200, I don't have any problem doing that either.
As others have been saying, this along with other such similar retailer rebates and deals is virtually a guarantee that there will be a significant PS3 price drop announced at E3.