the laws and terms of use thing is quite strange, as sony usally add some extra functions to there consoles to make them computers, so as to avoid extra tax on entertainment, so i bet officially the psp is a computer. so, to me at least, the hard drive theory works for me
woooo
about the piracy thing... if only there was a way to hard install ( i guess that means permanently) a 1.00 or 1.50 firmware on the extra chip which blocked out all UMD drive access, stopping UMD emulators, then you could use your psp flash to play the latest UMDs.
never work i know
it is a shame but every other site ive seen about extra flash/modchip is full of comments about people finally being able to run ISOs . damm them all to hell