Philip “pt” Torrone gave a demo of how to hack the PSP, including the ones with the latest firmware on it, at Gnomedex. When when PSP came out, first version was 1.0 in Japan. People were interested in creating their own games. Sony then upgraded the firmware, and you wouldn’t be able to play homebrew games on the memory stick. Until a week and a half ago, your only option for running these apps was having a 1.0 firmware PSP. We are getting close to seeing UMDs dumped to Memory Stick.

You use an application called PSP Swap Tool. It tells you to put an app on one Memory Stick, and the other file on another. You insert the Memory Stick, and you can choose from a myriad of installed emulators. He scrolls through and finds a game he wants to play. He hits X to start it up, and then switches cards during the loading screen. The chess game starts up to a round of applause. He does it again, and this time starts the Commodore 64 OS on the PSP. You can check the tutorials at MakeZine.