Things You'll Need
Instructions
Download the official firmware recovery file. It can be easily found through a simple Google search. It comes in a RAR file, so extract it (preferably to a directory you can remember easily, like the desktop).
Format your memory stick using the PSP’s interface. Be sure to back up any data you may have on the stick, as formatting it completely erases its contents.
Connect your PSP to your computer by putting it in USB mode. Once there, put the recovery folder extracted from the recovery file into the PSP/GAME/ directory on your PSP. Once you’ve done this, you can exit USB mode.
Shut down your PSP. When you reboot it, hold down the right shoulder button. This puts the PSP in recovery mode. Select “Run Program at PSP/GAME/RECOVERY/EBOOT.PBP” from the menu you are presented with. Follow the on-screen instructions to install the program.
Power down the PSP as you did in Step 4. When it powers back up, you will be prompted with the default setup just as you were when you started up your unit for the first time. Continue on with this setup. Congratulations! You’ve just restored your PSP to its factory settings, firmware and all.