so my ps3 decides to crap out while i was in the middle of one of my best game on COD MW3......14 kills, 0 deaths.....
its the dreaded blinking red light and i cant get it come come back on. i bought my 60gb PS3 at launch.

did anyone have the same issue and try the fix using thermal paste and a heat gun? i think ill have to give this a shot
I know it can leave a gamer feeling inadequate but it happens to the best of us. I'm here for you buddy. I'm here for you. Tomorrow, we'll go to the pound (or Gamestop) to get you a new PS3.
The heat gun fix (Gilksy method) does work but it's not a permanent fix. I found it lasts about a month tops before it yellow lights again. They only way to permanently fix it is to re-ball the CPU and GPU. It's not a DIY thing unless you're really good at soldering. There are people who will do it for you.
The problem with 90nm CPUs is they put out A LOT of heat. The PS3's YLOD is the same thing as the RROD. The systems are basically using laptop cooling to chill high performance desktop grade components. Over time, the tin solder (which has a lower melting point than lead) becomes brittle from repeated warm ups and cool downs. The CPU actually dislodges from the ball grid, causing the system to fail.
If PS2 backwards compatibility means a lot to you, you could try to fix it. The 60gb is still the Cadillac model, and has quite a few features the others don't. I'm tempted to get mine re-balled, and modded with water cooling. Just something I had in mind.
If PS2 means little to you, a PS3 Slim is a very good replacement. They run much cooler and quieter, and use less electricity.