Does anyone else have this issue?

Problem: PS3 takes in discs fine. Graphic in upper right corner displays that disc is being read. But, disc icon never pops up in game menu or dvd menu to allow the disc to be played.

I've had my PS3 for 40 days. Basically, it started this on the 35th day. It was on a surge protector, is never moved, and gets plenty of air for cooling. I've tried to resolve issue by powering down, inserting discs/games/dvds. I've reinstalled the PS3 OS. Still no go. After reinstalling PS3 OS I turned it off for 3 days. Inserted a game and it worked, but a DVD would not. I took it back to Best Buy and they smiled and said "after 30 days we can't do anything". After returning home, games worked and dvds worked.

I played Madden for 70 minutes, then the PS3 froze up. I soft powered it, now no discs can be recognized.

Are there any known issues like this? Any ideas?

Thanks in advance.

I pretty much figured this was a hardware issue, but I was curious if anyone knew of a known issue with these symptoms. Regardless of policies, if you spend $500 on anything, you should get a new if it breaks after 40 days.