i had this error today too, half way through playing a map on cod4, it just frooze and i could not do anything atall, so i powered off the ps3 and powered back on again, and the ps3 was not reconising i had a game, but my cod4 disc was still in there.
so i ejected the disc and put it back in, and it still wouldnt read it, i tried with other games and same thing.. so i turned it off for 10 minutes, turned it back on and thought it was ok, as it was now showing the cod4 game in the xmb.
tried to run the game, and it would try to run, i would get so far as even searching for a game and waiting to game start in the lobby, but it would just freeze, and then back to square 1 with it no even regester there is a disc inserted for a while.
i rang sony, and they confirmed that this error code (80010514) is indeed a hardware failure, to be more specific, the Blueray drive has failed and the system will not run like this.
so he arranged for a corrier to come with a brand new ps3 system for me, and the corrier will take the faulty one away, free of charge of course..
so anyone with this error code, it is NOT a firmware issue, it is for sure hardware failure, the blueray disc is gone and will need replacing.. they come to bring me my new one on monday, it is now saturday morning, so its not to bad.
i have had the ps3 since november last year, and i thought it was just great how the guy said immidiatly after i gave him this error code, that they will replace it with a brand new ps3, even though its 5 nearly 6 months old, i thought they would take it for repair, not give me the brand new one, so im very pleased with that,
sony are great, never had problem like this before with any sony product, im long time ps user and psp
and when i do need it, they replace me a brand new system.. just fantastic after sales service, beats the hell out of the xbox i think..
anyway, this post was just to confirm that this code means your blueray drive is broke and no firmware can fix it im afraid, youll have to ring sony and get a new ps3.
marty