Lumines made it possible
A new hack or exploit for the PSP has been made possible thanks to Lumines and the good news is that it works with every single version of PSP firmware, even the latest 3.50 release.
Two groups of homebrew coders - Noobz and Archaemic - found this exploit and it is using a buffer overflow in the savedata file, similar to the GTA exploit that was used earlier.
Currently this exploit only allows for a small demo from Noobz and Archaemic to be run, but given some time, someone will surely release more content for this exploit.
You can find out more about it here
In a related story, it has come to light that the latest version of the PSP firmware, 3.50 has increased the speed of the PSP CPU from 266 to 333MHz. It is not quite clear why this has been done, but I don't think anyone will complain.
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