Ps3 update loop problem - 8002f0c1

Hope anyone can help me with this problem, have been trying everything but nothing seems to work. So I bought this beauty of a 60gb backwards compatible ps3 (CHECHC04) today with what I tought was a minor and easy to fix problem. When you boot the system up it needs to update but crashes at 4% of the update and gives the 8002f0c1 error, then it restarts and give the same error again. Can't really find much help about this error on the Internet.

Things I tried:

- Booting up in Safe Mode and trying to install an update through an USB with update file. (still gives the same error) Tried the latest update file, but also some older versions.

- I tried formatting the disk drive, but gives the error: "no acces to hard drive ps3". Don't know why??

- So I tought it must be a faulty hard drive, so swapped the hard drive for a known working ps3 60gb drive, but it gives me the same problems as above, also needs to update and the 8002f0c1 error.

So I can't really think of any other things to do? Could it be a hardware problem instead of a software problem? If so, is there a way to fix this? These systems are kinda rare so hope someone can help me fix this beauty... ? it would be really appreciated!!?