I would guess by now they would make you pay to fix it. I recently had to go through all this for my console (though I'm not complaining because my console lasted 4 years of daily heavy use). It's $150 if you go through Sony. You could also look into a 3rd party service, which tend to be around $75 from what I saw. The other option is you can open it up and fix it yourself (if it is indeed fixable). I actually have a blog that I edited as I tried to fix mine. In the end I could not fix my unit, however, my friend had one that YLOD on him that he had replaced. So I fixed his and he sold it to me for $50.
As far as your data, it's not as simple as just putting the drive in a new unit. You would need to have had it backed up first. Also keep in mind for some dumb reason, some saves are protected. The only way you're going to save those is by getting PS Plus and doing the online storage thing. If you need to swap to a new console you will most likely need to redownload any games you had from PSN (at least I had to).
If you want to try and fix it yourself (it's actually not too hard) ifixit.com has a good guide for getting it open and taken apart (it's the one I followed). My main tip on that would be to only do the GPU not the CPU as some videos and guides say (the ifixit one has 4 areas they tell you do heat up but I found on my unit that what I ended up with was a working console with a fucked up image, which I'm guessing has to do with me heating up something that didn't need it). What it really came down to is you take apart the PS3 pretty much completely (I ended up doing it so many times I could have it tore down in like 20 min lol) and then use a heat gun to heat up the solder on the gpu, which then lets it melt back together.
Hopefully with all the RRoD and YLoD issues the next consoles will be made better, though they were designed when lead based solder was still ok, so at least now with the next ones they can go in knowing they can't use it.
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