If it's still in warranty, you should call Sony. If not, my experience is they don't care so you're best off getting a new player because it's cheaper than paying for yours to be fixed.
Mine failed doing the online update - just stuck with 'Sys Err' on the display and the disk tray stuck out.
I then tried doing a software update using a CD, but it just spits that out again.
Sony support said that mine's out of warranty (by just 3 months) so they won't do anything (they even quoted me the "before you updated, you had to agree to the terms and conditions so it's not our fault" line!).
Local Sony Service centre were very helpful but as it's not under warranty, want to charge around £100 + labour + vat to fix it (which is more than it'd cost to buy a new one!).
