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Seems like a serious problem:
Last week I heard a 'chime' and the PS warning was displayed on the screen. My Prius just has a little over 3,000 miles on it since the beginning of December. The first time it came on, it said 'Problem', then about 5 seconds later it chimed again and displayed 'problem solved' and the display screen returned to normal.

For the next two days the PS warning came on several times more, each time for a longer period of time. I tried turning the engine off to 'reset' it, as outlined in the owners manual. I could feel the steering 'tighten up' and it would 'twitch' even when stopped and the engine was off.

I brought it in to the dealer earlier this week. They just called and said that the light wouldn't come on again, but, the power steering began some serious vibrating. They have been in contact with Toyota. A complete, new steering rack is now on order!

The Neill-Sandler Toyota Dealer in Middle TN has been great. They provided me with a 2003 Corolla to drive during this whole ordeal.

Let me know if anyone is having the same symptoms. You may need some serious repairs before you go past warranty.
 
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