Factory/Service Mode

Hi, I recently picked up a used 80G PS3 with a power supply failure and of course it was a "final sale" deal. I repaired the power supply only to find out that upon booting I get a red square at the bottom of the screen that says: "Playstation 3 Factory/Service Mode" It will not access the HDD and will not play movies/music.....is there a way to remove this "factory/Service Mode" without sending it to Sony?(They want $169.00+shipping)
I have tried to restore/format/system update but it will not allow it(will not access HDD)....I have formatted the HDD in my PC and tried a different HDD with no help......:confused:

are you sure that your ps3 wasn't before in service mode? so we can get into service mode by changing the supply? quite interesting!