Ok I feel like I have a little clue on the problem but I need 3 questions answered.
Does the system name have anything to do with the connection? If it was connected and the name was erased would that cause anything to happen?
By "system" are you taking about the PS3 System or the Access Point you are connecting to?
-No, changing the PS3 system has no effect on connectiong to the internet.
-Yes, changing the Access Point name or SSID will have an on the devices connecting to it. This can only be changed at the router level.
Under "Settings and Connection Status List" is Security supposed to say "WPA-PSK/WPA2-PSK" and flash to "WPA2-PSKO(AES)" after about 30 seconds then flash back after 1 second?
The security protocol must match the one being used by the router for otherwise the PS3 will not be able to decrypt/encrypt the transmission between it and the router.
I hope I didn't sound confusing but can someone help me out please!
Talk to your friend and ask him to give you all the network info again and re-do your PS3 network setup.
There is also the possibility that your friend has set his router to only have a limited amount of IP available for automatic leasing [DHCP]. For example, my DCHP IP pool has only 10 IPs. You can by pass this by doing a manual network setup and assigning your PS3 a different IP. For example, 192.168.1.150