Instructions
Open an Internet browser on your computer. Go to the PSP System Software Update web page (see Resources).
Click the "Download Now" button. You will be asked where you want to save the PSP update file. Select a place on your computer to save the PSP update file.
Locate the PSP update file you downloaded and right-click it. Select "Copy." Connect your PSP to your computer. Select "USB Connection" from the PSP menu. A window will appear on your computer listing the files and folders on the PSP memory stick.
Open the "PSP" folder on the PSP memory stick and open the "GAME" folder. Right-click the "UPDATE" folder and select "Paste." The update file will be copied to the PSP. Disconnect the PSP from the computer.
Select "System Update" on your PSP and select "Update Via Storage." Your PSP will search for the update file and install it.