Ok, Firmware: Get DAX 2.71 Custom Firmware SE-B And The Install SE-B'' Into It.
Mods: There Is Currently A Version Of X-Flash That Allows You To Flash To 2.71 SE, (So, Custom Fonts/ Gameboots etc)
Homebrew: That's a tough One. I Myself Have MVS PSP The Neogeo EMU, and Metal Slug, YPaint, Super Mario War, Metal Blob Solid, and DGEN sega Genesis Emulator. Also Get Deaudelus, It's A N64 Emu For PSP.
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