The release of PlayStation 3 firmware 2.40 last night seems to have caused a wide number of issues for those who updated to the new release, as we reported earlier. It now appears that Sony has since pulled the newest update, reverting back to firmware 2.36 as the most recent available version. We were just prompted to download version 2.36 after having skipped the most recent pair of PS3 software updates.
This may be a temporary move to prevent more widespread reliability issues. We are awaiting confirmation on the move from Sony and will update when we hear back.
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Thanks to Eddie H for the quick tip.
Update: SCEA has gotten back to us to let us know they are "looking into it."