Well, updated news. I had it off for a while, turn it on, it works again, and I just completed a race of PGR4. Its still working...
I don't trust the damn thing, but if its working fine sometimes, it can't be a hardware failure.
EDIT:
Gone again. I got through 1 and a half races, and then lines down the screen. Reset, and 3 red lights.
Somethings not right.