The use no-umd config in recovery has been changed to UMD Mode. There are 3 options:
1. Normal, requires a UMD all the time.
2. OE isofs legacy, or the OE recovery. This is kept as a retreat from the new, if a game doesnt work.
3. M33 Driver, this is the new NO-UMD mode added in this update.
To upgrade, copy folder noumdm33 into ms0:/PSP/GAME150/ and launch it.
The compatibility of new mode has still to be more tested, but M33 has seen that some games like GTA LCS and Xyanide Resurrection that didn't work in the old mode, work now.
This new mode doesn't use the sony iso loader, but it is inspired by it. So dont get your hopes up. >_>