I think this problem doesn't affect 3rd gen PS3 models as well. My 3rd gen is working fine. Maybe this is a way Sony will take out BC from the first and second generation models. o.o
http://www.zeldainformer.com/15-spirit-tra...walkthrough.php
There are walk through's there. Also video's of how to beat bosses. If my friend got the guide I'm sure it won't be to hard for you guys.