Is the PS3 starting up ok?
sounds to me like the blu-ray drive isn't reading the disks. when you put a disk in can you hear it spinning like its trying to read?
If the blu-ray drive isn't working you might either have some dust in there or its broken. Open the drive and try blowing in there a couple of times. If this doesn't work then you may need to take it back.
James M
November 2008