That's a lot of questions, so let's field them one-by-one, and at the end I'll also offer links to specific articles I've previous written on Ask Dave Taylor that are helpful for Sony PSP owners:
Can I download games if my PSP is running firmware version 2.5?
One of the greatest differences behind the scenes with the PSP firmware upgrade from 1.5 to 2.0 was that Sony added various checks in the code that apparently prohibit the unit from playing hacked or downloaded games. So as far as I can ascertain, no, you cannot run games you download onto your PSP if you're running any version of the firmware greater than 1.5.
Can I back up to an earlier version of the PSP firmware?
This is a logical follow-on question and the answer is "maybe". Sony doesn't offer any sort of official place where you can download earlier versions of the firmware or utilities that let you roll back to earlier firmware versions. On the other hand, various fan sites like psp-hacks.com have firmware download utilities like one that lets you back up from 2.0 to 1.5, but be careful: that won't work if you're running firmware 2.01 or 2.5. Further, there's a big risk in running software that modifies your PSP operating system but isn't from Sony: how do you know what it's really doing? What would you do if it broke your system? Or, what if it were a virus in disguise?
How do I download games like Pac-Man onto my PSP?
There are Web sites that offer illegal, hacked games that you can ostensibly download onto your PSP instead of paying for them, but, um, they're illegal and, as with unauthorized firmware downgrades, you really don't know what you're getting. Further, if you're running firmware 2.0 or higher, you probably won't be able to play the games anyway.
Having said that, if Sony were a really cool company, they'd encourage programmers to write new and interesting games that would run on the PSP, but not be part of the Sony approval and distribution system. There are lots of smaller, simpler games or ports of Open Source games, etc,. that would be cool to have on the PSP, but that'll never happen if every single game has to be formally tested and approved by Sony Corporate. Probably a pipe dream, alas.
Where can I find free games / music / videos / movies for my PSP?
My one word answer: Google.
Seriously, I'm not going to point you directly to these illegal download sites, but if you do want to try and find some of this material that you can drop onto your PSP, then I suggest you spend some time digging around on your favorite search engine. Good luck to you!
I downloaded MP3 files onto my PSP, but now I can't find them?
This is potentially the single most common question I see here at Ask Dave Taylor in the Sony PSP help category, and the answer is that the songs are probably sitting on your PSP, ready to play, but they don't show up in the MUSIC folder! They're in a subfolder: you need to find the entry in your MUSIC folder called "Memory Stick", then move into it by pressing the "X" button. Then all your songs magically appear.
This also holds true with photos you download too, by the way. They don't show up in your PHOTOS folder, they show up in the subfolder "Memory Stick".
How do I convert normal music to MP3 format for my PSP?
There's no simple way, but there are a number of different music format conversion utilities available from archive sites like Download.com. I suggest that you search for "Audio Converter" or "MP3 converter" and you'll see there are quite a few choices. One I'll just highlight here is Smart Audio Converter, but there are quite a few.
The Sony PSP can only play MP3 or AAC format audio files, so if your music or audio is in any other format, you'll need to convert it before the PSP will be able to play them.
How can I have my Sony PSP talk with my Windows 98 PC?
It's amazing to me that people are still running Win98, but this is another common question I see, and the sad answer is that there's no built-in support for removable devices like the Sony PSP in Windows 98. Fortunately, there is a shareware alternative that a chap in Poland has written and makes available off his Web site: PSP Win98 Driver.
Caveat: I haven't tested this driver out, so I'm not sure that it works properly. Proceed with caution, and if someone does get it to work for them (or not!) please do let us know about it!
Additional Useful Sony PSP Articles:
Still have questions about the Sony Playstation Portable? Then please feel free to Ask Dave Taylor and I'll see what I can figure out for you!
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I update my psp to 5.50gen-d and there is a full what will happen if there is a (full)?
im worried because my friend said if there is a (full) you cannot update any more is that true?