Which Firmware Is The Best For Me Anyway ?
The firmware you currently have will determine the apps, movies and games you can use on your PSP now. When you upgrade your PSP you can then enjoy all the latest games that come out from Sony but be warned, some older games and movies may not play after the upgrade. The Sony UMD game can sometimes be very expensive compared to others that can be legally obtained quite easily over the internet. As a result of compatibility problems people find it more convenient to downgrade their firmware again. A lot of people say version 1.5 is the best to use.
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Things To Remember When Using The PSP Firmware Downgrade

The main thing to remember when downgrading your PSP software version is the fact it is considered a software hack and may invalidate your PSP warranty. This is why it is very important to obtain the right firmware in the first place and also get the right instructions for the psp firmware downgrade. You also need to know the exact firmware version you currently have install as anything above 3.50 will mean you will not be able to downgrade to 1.5. Version 1.5 lets you play what some people call "homebrew" games and applications that can be stored on your memory card.
Downgrade Any PSP With Ease