Update your console to OFW 3.55:
3.55 | PS3-Hacks :: Hack your PlayStation 3
Then update to this (from recovery mode!) :
kmeaw's 3.55 CFW Patched PUP | PS3-Hacks :: Hack your PlayStation 3
Then download the latest Multiman:
From here
Place the FW files on a USB key @ USB:\PS3\UPDATE\PS3UPDAT.PUP (one at a time, or just rename the one you're not using) and install 3.55 OFW.
When installing Kmeaw's FW, (from standby mode) hold the power button until it turns on, then back off. Let go, then hold again until you hear 2 quick beeps (there's one, then 2 quickly after), then let go of power and insert controller connected by USB cable. Select System Update.
No jailbreak dongle required!
Your Blu-Ray drive might not be too bad, might just be the laser, which you don't have to replace in order to play games, but if you do, loads more will work. If it's the logic board attached to the drive that's damaged/dead you'll need to order an exact replacement from Ebay and get a dongle to re-marry the board to your PS3, you'll know it's the logic board if your console gets stuck in an update loop around 40%.