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I just replaced my PS2 about 4 months ago with one of the new slim ones, I got my first one the year PS2 was released..And i also had it sitting vertical..which i was told is not good for the lense.
I had the same problem, It was making all kinds of noises and eventually just stopped working. I took mine to EBGames and they gave me 70 dollars for it and i put that towards my new system. I would suggest seeing if your local EBGames will do the same..I'm sure it's company policy all over.
EDIT: Sorry not 70 dollars cash, They gave me 70 dollars store credit.
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"To win any battle, you must fight as if you were already dead" -Musashi
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