I had this for a while, the unit has a Red Screen of Death at this point, but I had it at a state you are experiencing (it was already "briucked" when I bought it).
You need to use the lvl2diag.self File "2" of the downgrader files, inserted in the FAR RIGHT USB PORT when powering on (normally, without the jig, too)
It's probably not good news, though. It's in service mode and it can't get to the XMB screen.
Working hard on UberCFW, incorporating NTFS, sub-free NetFlix and Blockbuster, PSN cheat system with built-in swearbot and MAC-spoofing, Adding MKV, RAM and BIK movie support, and Xbox360 emu*.
*not really. Get a life, newbs...
My YouTube channel: http://www.youtube.com/user/BenJeremy