Yep, it's broken in the PS3 GotY. See http://www.uesp.net/wiki/Oblivion:Vampire_Cure#PS3_GotY_Vampirism_Cure_Notes for details on the workarounds.

Hey all.....Been victimized by this so many times its sick.

IF you have the GotY edition, DO NOT go into the Isles BEFORE getting the cure, and your game will be fine. If you go into the shivering isles, that is what creates the problem. You can try to get the original disc with the expansion, then load your original game. Unfortunately this only works maybe 25% of the time.

Best bet, and this svcks butt if you have put in considerable time...go trade in your GotY edition and get the 2 discs, and, yes, start over. Always Always Always start a new save file and have 2 to 3 files and toggle between them as you progress, as even the original discs can create issues. This mostly happens if you keep re writing over the same save file forever and not splitting them up.

My best advice to anyone with this issue, and I have had it enough times to make every race level 40 or more due to restarting the game, contract vampirism early, either from the DB missions, or going to the Origins of the Gray Prince mission. Turn early so you can get most of the items you need, make your cure early, and then simply get the mission out of the way, and carry your cure on you at all times.

There are random instances where a house that you own can be robbed of all its stuff. Worst feeling ever is making the cure, stowing it away, then having it swiped by some other glitch in the game.