Mod chips completely void your warranty and, if installed incorrectly or if you get a bad one, can completely destroy your console. I don't recommend them unless you know what you're doing and are willing to take a chance.
It sounds like there is an issue with the optical eye of the laser that reads the discs. This is a hardware issue and not a software one so a system restore won't do anything. Something may have been on the disc which caused the laser to become obscured or for whatever reason it may have been knocked out of position entirely. If you really don't trust the Sony center, take it to another place that services blu-ray players, DVD players, computers, etc. However, I would at least take it to the Sony service center and see what they say as not everyone knows how to work on PS3 consoles.
Ps3 not reading discs
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4 September 2008
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