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Instructions
PSP Setup
Start at the "System Setting" area on your PSP. Select "System Information" to find the version of firmware you're running. It will say "Version..." followed by a number. Write the entire number down, as downgrading is version-specific.
Check your motherboard for the serial number IC1003, located on the back of the PSP on the edge of the circuit board. Do not proceed if you see this string of number, as this type of motherboard is not safely downgraded using this method. Otherwise, you're safe to proceed.
Search online for the downgrader specific to your firmware. For example, Easy Downgrader can be used for firmware versions 2.0 and 2.01, but not 3.0.
2.0 Downgrade Process
Start the 2.0 firmware downgrade process by turning off the anti-spyware software on your computer. These programs tend to interfere with the download of the other firmware files. Download the downgrader software.
Attach your PSP to your computer. Move the files "index.dat" and "h.bin" to the main or uppermost directory. Create a "Photo" folder under the PSP folder. If one already exists, you don't need to add another. Copy the file "overflow.tif" to the "Photo" folder.
Create a folder named "Update" in the "Game" folder, also located under the PSP directory. Save the "PSP 1.5 Update" download here. Remove the connection between your PSP and your computer.
Connect your PSP to the wall outlet, turn it on and go to the "Photo" menu. Hit the "X" button and scroll down. Check the screen to see if your PSP froze; if so, restart the PSP. The screen may also be black with white lettering; in this case, hold the power button up for 10 seconds, then restart. This is called a hard reset.
Go to the "Game" option and select the memory stick. Run the 1.5 Update program while the PSP is still plugged in. When the program fails to install at 99 percent, restart the PSP. Once it loads again, you should see a blue screen. Hit the "O" button and you're finished downgrading.