Thanks MicroNut for breaking it down, i hate reading all the posts of people who don't read the README, and if you did read it and still don't understand, then sorry and disregard this. But everything you need to know is pretty much in the README.
I've been following the scene for awhile and worked on multiple PSP's and just reading the README helps at least 70% of the time. People don't be lazy ... just read.