Kind of Serious PS3 system issue (please help)

Sorry for the dramatic title, but this is kind of not good. My friend's PS3 had some sort of issue and required us to download firmware update 4.0 to a flash drive and install it again that way. Fine, easy enough. That was done but now none of the categories (i.e. game, photo, network, etc...) have any drop down menues/options. All I have showing up are the options for settings.

Truth be told, I have absolutely no idea what is wrong. Due to that, it would be very much appreciated if anyone knows of this issue, what it could be, and possible ways to fix it.

Thank you for any assistance.

EDIT: We did the full system restore and have a new question. Is there a way to use his old PSN account on the PS3 or does a completely new one have to be made. The main thing is he can't use his email since it's attached to his old PSN account and it would be nice if that one could be used again.

Again, thanks for the help.

Thanks for the help. Sadly everything had to be lost, but it had to be done.

In regards to your edit question, I'm afraid the answer is no, he'll have to create a new PSN ID, as the data for his previous one was deleted.yokokoroma