It seems my PS3 died, will test it again few hours later. Basically it starts, gets to XMB and if i start game it shuts down, or if i don't start game and leave it to wait on XMB for minute or so it shuts down, goes "bit bit"(sound), shuts down and red light blinks .....

Anyways, tomorrow i will take it back to store( i have 3 year warranty, got MGS4 bundle) so i was wondering. What should i do with my account? Currently it is on auto login and on PSN store there are my VISA details, this worries me. Don't want someone to see that .....
What should i do?

Sucks man, Same happened to me about 2 weeks ago, 60GB BC. They have a higher failure rate than Non BC

You can do a accout recovery with your new PS3

if you have a friend or family member with a ps3 put your account on theres

You can log onto your PSN account using www.us.playstation.com and log onto playstation network. There is probably some options there to do something about your credit card and details. You should try resetting it though.

Have you tried this?

1 - Turn on TV and set input to port being used.
2 - Make sure PS3 is connected via correct cable.
3 - Power on PS3 via power button and HOLD IT for 5 seconds (release after the second beep). It should automatically configure your PS3 to the TV's native resolution for all settings.

If none of those work sony can temperaily lock your PSN if you call 1-800-my-sony.
Hope this helped :)

the account isnt linked to the PS3 so when you get your new PS3 just sign in using your account and everything will be fine trophies and friends list wise

First, erase your personal information.
Then, make sure you go to account management to deactivate your account (games, videos). Make sure not just remove/delete your account from your broken PS3, you need to DEACTIVATE it so you won't lose one download slot forever after you turning it in for a new PS3.

 Dude i want to HIDE my VISA info that is on my account. You know i am sending my PS3 with that info in it. Why should i trust anyone back at Sony.

your account is NOT link to your PS3 its linked to SONY database so they have it anyways

when i want to hide something i use gasoline.