I'm not sure of any places near you.  There's a place in a mall across from Pacific Mall.  There's a place near where I live near Wonder Land.  And I'm sure there's a few shops in Pacific Mall that still does stuff like change drives and lenses.  Video Games Plus will do the change for you, but it'll be 110 bucks.  I'm not sure if they'll sell the lenses to you though.  There's one in MIssissauga, which may be near you (If I remember where you're living properly).

There are a lot of videos on youtube. I repaired mine once. First of all, be sure to watch a couple of different videos for the procedure, then you can have an idea of what you gotta do, and make a decision if you wanna do it. Plus, you can use the most visual video for when you want to change it. You can buy just the lens, or the lens with the rail, I replaced the lens with the rail because it's easier and most video show it like that.

I bought my lens on an internet store in Mexico, I think it's the safest way. Just don't buy it on ebay or something like that because they can send you used lens.

my 60gb backwards compatible PS3 works to this day, bought it in 2007

I heard something about the first PS3's at least having an issue where the blu-ray lens cracks and do this. I think it happened to a friend of mine after a year but I haven't heard anything on it since then. Just YLOD which is actually not the majority of PS3 failures...it's just popular to reference I guesss.

i am sorry your system broke(which sucks) and i wish i could help but i can't. you could pay sony to fix it

Would this work with a ps3?

http://www.amazon.co.uk/Toshiba-MK5076GSX-500GB-5400RPM-Internal/dp/B004UGWFZ8/ref=sr_1_2_m?ie=UTF8&qid=1344427355&sr=8-2

Also, how likely is it to get a 1TB into a ps3 without any problems?

To my knowledge, It should be no problem so as long as its 5400rpm.