This happened to me, the worst feeling imaginable...so I buckled down and got a slim (just before the Super Slims, so my slim was cheap), and wow, was it an improvement, its quieter for one thing. Sure there was no PS2 playback...thats why I have my PS2...but the PS2 is not in HD. I have this
http://www.amazon.com/gp/product/B0016SN49Y/ref=oh_details_o00_s00_i01?ie=UTF8&psc=1
got it for my Dreamcast, and its fickle with the Dreamcast's VGA signal, but it works beautifully with my PS2, or anything with a component connection. the games that run in 480i are foggy, but the 480p ones are....excellent.
of course, there is the emulation route, if you absolutely have to play PS2 in HD.
I had a launch 60gb, never played it, sold it before it when they were worth something (i.e. when they announced no more BC). I'm happy I did too. Have a slim and love it. No stupid impossible to keep clean glossy top, smaller, WAY quieter, etc.
I've got like 5 PS2s. I don't really need a PS3 to play those games

Well - i've just ordered a limited edition white super slim, god of war ascension pack.
Think i'll send my fat one to sony (lol) for a refurb.
Nice! I've been thinking about sending this busted 60GB I have here in for a refurb. Might be worth it. I'm sure as hell not gonna fix it. I opened that thing up, took one look at the gutty-wuts, and was like "F that!" That thing is a dense, DENSE box of electronics. Ick.