The Bona-Fide and Definative Guide to PSP Hacking
Either you came here to learn about running home-brew on your PSP or you came here by accident, either way, welcome!
What is Homebrew and how can it help me?
Homebrew, in this case, has nothing to do with making your own beer or coffee. Homebrewing a PSP is when you run a modified version of the standard operating system (now on known as OS) which allows you to not only play the standard assortment of PSP games but free, down-loadable content, like emulators and applications.
Installing Homebrew (NOTE: I will use Homebrew and Custom OS interchangeably)
If you want to install Homebrew on your PSP then you are in luck! Through the use of a wonderful program called ChickHEN it is possible to run the Homebrew on nearly every PSP model except the GO (more on this later).
Step 1: Identifying your PSP's Motherboard
(NOTE: If you have a PSP-1000 you do not need to do this step; all PSP-1000 motherboards are supported!)
Over the years each model of the PSP has undergone revisions and slight changes have been made to the motherboards. It is crucial to identify the specific motherboard model to know if the PSP has the capability to run the Custom OS. The easiest way I have found is to download and run a program called PSPident 0.4. After downloading the archive, extract it to the directory "X:\PSP\GAME\" (where X is the drive letter of your PSP's memory card). Once this is completed exit out of USB mode and go to the Game section, then click Memory Stick and you should find an icon that says PSPident, run it. Once PSPident starts you should see a black screen with text on it, identifying several main processors (Kirk, Tachyon, Spock, etc. 
), and most importantly the motherboard's model! (NOTE: if I were you, I would write down this number!)
My PSP-2000 Running PSPident 0.4
Once you have the motherboard model, reference it to the chart, if it says YES then you are good to go, if it says NO or you have a PSP-3000 (Brite) then this tutorial will BRICK YOUR PSP! If you have one of the not supported motherboards, proceed to this tutorial!
Hackable PSP Motherboards! Thank you PSPSlimHacks.com!
Step 2: Getting Ready for Homebrew
This step is straight forward, the exploitation that we are going to, well, exploit is only available on the PSP 5.03 official firmware. To update to the firmware create a folder called "UPDATE" (without quotes) in the directory X:\PSP\. Then extract the "EBOOT.PBP" there then get your PSP out of USB mode. Once out of USB mode go to the Game section and, once again, go to the memory card and under that you will find a new icon called PSP Update 5.03 (or something along those lines) and run it. Follow the on screen instructions and you will have version 5.03!
Step 3: Hatchin' Our ChickHEN
Our exploit for the day is a wonderful program called ChickHEN Homebrew Environment, running this allows for a permanent solution to be installed. To set up ChickHEN, download it, and when you open the archive you will see four files, like so:
The ChickHEN "Nest"
If you have a PSP-1000 use the PHAT, if you have the 2000, use the SLIM. Go into the appropriate directory and copy the ChickHEN folder and put it in the X:\PSP\PHOTO\ folder. Then take the "h.BIN" file and put it in the root of the PSP (NOTE: A root, in the context of a file-system is the base or main directory. Ex: "X:\" is the root directory of the X drive). Done! Move to step 4!