Hardware or software problem ???

Just bought a PSP console on ebay auction but there are some problems, I do not know is it hardware or software issue,please help.

Problems listed here
1. unable to select the YES/NO option when exiting UMD disc or iso games using HOME button, volume key is working fine, keypad working fine too, tried playing some games and tested.
2. continuous movement of cursor to the right when entering data in wireless network function setting, which made key in impossible. When entering profile/character name during game play was ok. Tried with a few games and also the keypad does not have this problem during game play.

Maybe JAP PSP! try pressing o to select yes in HOME screen!

Dodgy analog! Gold strip has slipped out of place!

open up the PSP and move the gols slip to the middle of the PSP analog!

Actually I forget to mention that the left/right keypad does not move the selection box in between YES/NO under HOME screen. But the left/right keypad work fine during game play, similar to problem 2.