Fingers crossed mate.
A friend of mine got his PS3 Blueray repaired in Sydney for $120 and a drive to Chatswood. The name of the place was The iPhone Doctor
I remember seeing a story on him once. He provides a service nation wide but not sure on costs to send to him. Could email him. Details on the website.
As for trade in on a new console. Mate if it's the original 60GB Australian release don't do it.
Fix and keep or sell for a better price. People are still in love with the backward compatibility aspect of this machine.