Dark Alex, Mathieulh and HarleyG have managed to put together a new custom firmware for the Sony PSP : 3.0OE Custom Firmware.

This custom firmware will :

• Run homebrew using 1.50 kernel (same compatibility as 2.71 SE-C)
• Add a recovery menu to the PSP
• Run 3.02 vsh
• Run homebrew using 3.02 kernel
• Play UMD Video from any region
• Allow region selector
• Allow selection of O or X configuration
• Allow you to enable WMA
• Allow you to enable the Flash Player

This custom firmware also removes the following :

• Location Free Player
• Korean Fonts

So what exactly is this custom firmware then? It is basically a way to update your PSP to run firmware 3.02 while still being able to run homebrew software, either in 1.5 or 3.02 mode.

It adds a recovery mode to the PSP which means that under most circumstances, the PSP can be recovered from a normally fatal error that would result in a bricked PSP.

• OE runs all homebrew from the /PSP/GAME302 folder using the 3.02 kernel. Homebrew here have to be NOT kxploited.
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• To run applications with the 1.50 kernel, and have about 99% compatibility with current homebrew, put those applications in the /PSP/GAME150 folder. Homebrew here can be either kxploited or not.
•  
• Now the standard folder, /PSP/GAME can be configured in the recovery menu to either execute 1.50 homebrew or 3.02 one. (by default is set at 3.02).
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• Native UMD emulation is now in the custom firmware. ISOS are shown under memory stick games. Currently ISO and CSO are implemented, for technical reasons DAX is not implemented yet, but may be done in the future. At the moment they require an umd to be inserted in order to be played, although they show in the xmb without an umd. Note that whenever you do an update to the ISO folder (add, delete, change files, first OE-A execution), a little delay will ocurr when entering in memory stick games. While the ISO folder is not changed, this won’t
  happen.

This custom firmware does have an element of risk and may result in your PSP being bricked, so I suggest that you read the readme.txt file in the download (see 3.0OE Custom Firmware for links to downloads and many comments from people who have installed this custom firmware).

I’ve not personally installed this custom firmware for a number of reasons :

• 1. I’m happy to to continue using my PSP with firmware 1.5, and using DevHook version 0.44 through to 0.51 if I want to emulate a later firmware version.
• 2. This is the first release of the custom firmware for firmware 3.02. I have no doubt that it will be refined and improved and subsequent releases are likely to be less problematic.
• 3. I have no need to run iso/cso files, so the benefit of being able to run them direct from the Game menu option is wasted on me.
• 4. I’ve yet to find any homebrew that I need to run under anything other than firmware 1.5.

Having said all that, this custom firmware shows great promise, and I look forward to seeing it refined and updated. I may at some point decide to make use of a custom firmware, but at the moment I’m happy in my world of firmware 1.5.