If you fix it yourself make sure you do it right or you could end up with a fire hazard. If you go the buy a PS2 and PS3 route, I'd buy a new PS2 unless you just want to replace that again.
You would think by now that the PS2 components would be cheap enough to toss in with EVERY PS3 so that Sony will get those on the fence about buying a PS3 to jump in with the rest of us since they could still play their old games on the new system that way.
But as has been said before, it's probably an attempt by Sony to drum up sales for their downloadable versions of the same games. Although Sony hasn't officially said they're releasing PS2 games onto PSN as of yet, I have a feeling it's coming any time now and the removal of BC via software was a step towards that.
PS2 component costs dropped over time, but at some point it will not go much lower for some time and can even go up, especially without another redesign. Of course yes they also want to sell you those games instead. I don't see it ever coming back given they'll make so much more with them on PSN.
my ps3 got a YLOD last thurs. I sent it in to gophermods.com and it came back today and is working like its brand new. I also got a nyko intercooler TS to help with any future overheating problems.
Intercoolers will cause more problems.
If I were in your shoes, I would buy a new ps2 and a new ps3 slim. My PS3 has been a lil janky lately so if it stops working I'm doing what I just done did said er...... If money is tight then just send it to Sony and get one of those warranty's their offering now, the total for all of that should be just under what a PS3 slim would cost though so.......
What warranty do you speak of?