I have spent a few weeks examining all of the PSP's security measures, I have found a hole in one of them which was enough for me to develop a boot hack. I have only tested this with the European Firmware version 2.00. But i think it will work with any PSP using firmware 1.5x - 2.00. If you are unsuccessful in preforming this hack, the PSP will NOT lock up like it does with most fake hacks.
When you start a normal PSP running Firmware 2.00, and put a mem stick in with the same version but as an EBOOT file, it will simply say that "system software is version 2.00. There is no need to update". This hack will get you past that stage, and allow you to load the actual Firmware EBOOT file. This hack requires 2 mem-sticks. When the EBOOT has started, it will give you the option to install the Firmware, with no errors in the way!! This is accomplished by using a hacked EBOOT. The PSP will recognise this hacked EBOOT as "System Software ver. 3.00. I have uploaded a video of it working now. But this hack will not be released until i am sure it will not brick your PSP! Anyone who would like to help with the development of this hack can email me at email@example.com. For 'some' people who may think this is the sargeant007 hack, it is not!
Here is the link to the Video: