Instructions
Download the 3.41 firmware patch from the Internet.
Download and install Freeware Hex Editor.
Run Freeware Hex Editor. Select "Open," followed by the 3.41 firmware file that you downloaded from the Internet.
Select "Find," and then choose the "Replace 3.50 with 3.41" option.
Save the changes into a file, and copy the file into a USB flash drive.
Download the file "Lv2Diag.self" from the Internet. Rename it to "Lv2diag.self.1" and save it onto the USB flash drive.
Remove the USB from the computer and insert it into the right-most port on the PlayStation 3 console.
Activate the PlayStation 3 using the jailbreak method. To do this, hit the power button at the same time as the eject button. Select "Update from USB" from the menu. Wait for the device to update and power itself off.
Remove the flash drive and insert it into the computer.
Delete the two files and add the original "Lv2Diag.self" file back onto the flash drive.
Insert the flash drive into the PlayStation 3 and power on the device. This step should take the PlayStation 3 out of factory mode and back into retail mode.