So sounds like you have what some refer to as Green Light Of Death (GLOD). I have a ps3 with the exact same symptoms except I have no video at all. Typically GLOD is accompanied by a blank black screen along with no audio at all... it is a bit odd that you are getting this matrix effect. I believe you have GLOD on account of the usb ports not working and the video problems. I am assuming you have a green light when you power the unit on and no audio? If so then you definitively have GLOD.
If GLOD is the case, the problem was not caused by the jailbreak or after making backup copies of your two titles. Chances are that this system has had existing issues and someone did a reflow for the Nth time and the lifespan is now very low.... You see GLOD is caused by a failed connection on your PS3's RSX. The fix is a 50/50 chance with even more odds against you if the PS3 has been reflowed previously.
To see the damage and to possibly fix the ps3 you are going to have to disassemble the PS3 and then take note of the condition of your RSX. If it has residues around it or a noticeably different color around it then you have found the culprit. You can refer to my post to see if you chip looks anything like mine...http://www.ps3hax.net/showthread.php...highlight=GLOD
Sounds like you will be able to fix the PS3 since you are getting some video. In summary you are going to want to add pressure to the RSX by any means possible. I grabbed this from a thread here at PS3 Hax:
Sure, be glad to help. Heatgunning improperly rarely works and actually CAUSES solder bridging! First you must determine if the "no VIDEO" is due to lack of compression from the heat sink of the fan assembly onto the heatshield of the RSX. (sometimes no video is due to a bad firmware install, these cant be fixed) Similarly most YLODS result from CELL BGA bridging or lack of compression. The CELL cpu is on the left, the RSX on the right (with the ps3 flipped upside down).. SO now, with the power supply connected and the lower plastic case off, and the fan off and put to the side, and the ps3 flipped over, put pressure on the RSX at the lower bottom left corner using a blunt metallic instrument like a screwdriver. Dont touch it with your hand cuz it gets hot. . Most of the Pins in the gridarray for controlling video output are located in this region of the RSX processor, and its THESE pins that fail to make contact and give you "NO VIDEO"!. Looking at the underbody of the PS3 assembly, You can use a big screw driver. i have found that about 70 percent of no videos are due to a "NO CONNECTION" at these points of the ball grid array...also no video and YLOD sometimes is caused by a poor connection at the RSX chips at the lower RIGHT hand corner of the CELL. Now if you get a YLOD error and the CELL is not getting hot then the problem with the board is a voltage regualtor issue or bad shorts, albeit nothing to do with the RSX or CELL. Looking at the ps3 upside down, the CELL is towards the harddrive. now understand while putting pressure you must also press the power hinge on the button power board connected with the ribbon cable so you can power on. Dont use the heat gun yet...ill explain when the heatgun comes in handy...so hard to explain....
Read more: http://www.ps3hax.net/showthread.php...#ixzz1ZaqCpimZ
An easier method is to add four pennys to your RSX chip to add pressure. Check out this video....
PS3 cfw 3.55 kmeaw GLOD\YLOD Four Penny Working FIX - YouTube
And if all else fails do the procedure for YLOD but focus on the RSX mostly...If you do manage to fix it I would heavily consider modding your fan to run full speed or better yet to visit Killer Bugs site and grab a fan controller. This way you can better your chances of the solder holding the connection.