Sony has very quietly announced a fix to the issue with firmware upgrade 3.41 that caused system crashes when attempting to upgrade the console's hard drive.
Said SCEE blog manager James Gallagher on the PS3 blog, "We are aware of the symptoms with the system software update 3.41, released on July 27, and that it will cause the update to stop in some occasions while replacing the PlayStation 3 (PS3) hard disk drive (HDD) if the PS3 system is installed with version 3.41."
Sony has re-released the software update, he said. "If you are experiencing such symptoms when replacing the HDD of your PS3 system, we kindly ask you to use the latest data and try again. We apologise for any inconvenience this may have caused, and appreciate your understanding and continued support."
You can download the update from Sony's PS3 download centre.
Has anyone attempted this fix? How did it turn out?