So i tried logging into PSN this morning from the XMB and it did not work on any of my systems. I kept getting DNS Error Hence all of them were working fine last night. I checked my setting in Network Settings and all was good. Then i decided to just give up and just see if Netflix would work. It asked me to sign in an Wallah! It logged in without no issue.
Could it be that when the PS3 requests a sign on from Netflix it does not call the firmware home?