Over the next day and week you’ll hear about the new PSP 2.0 update from all the usual places, but don’t update- really. There are a couple new features, like a web browser, image transfer/wallpaper, some other video and network tweaks- but it’s a yawn. You’ll lose all the amazing homebrew playing capability, emulators and cool applications the PSP makers are cranking out- so don’t do it- it’s just not worth it, it removes fun (until the version 2.0 firmware can play homebrew, then it’s ok to update). Link.
PSP 2.0 Update DO NOT UPDATE!