That's pretty weird, it worked for me when I put mine in when my other BC PS3 was still working. Which PS3 do you have and which version of the disc did you use? The PS3 I did it on wast he 2nd-gen 80gb Motorstorm bundle that I purchased in Feb. 2008. I tried versions 3.0 and 4.0 of the discs and they worked. Maybe a firmware update broke the disc's compatibility?
I do know that the built-in version of the start-up utility was a different version than that of the start-up discs, so maybe you could give that one a try?
LOLFAQs, where anyone who disagrees with you is a troll. Next purchase(s): SSX, Counter-Strike: GO