2.0 and above dont work with sleep mode
but if you get the latest emenu from fanjitas site their is a slumber mode option from the eloader menu which almost does the same thing
check fanjitas website for all info on eloader as every question will be already answered for you on there
about lcd
only always black/dark pixels are dead(not working)
white may be stuck so try the pixel fixing programs
it could be dust but stuck pixels are very common on second class lcd screens
also, never open the psp just to clear dust it voids the warranty and lets even more dust in the psp!! if you live in the europe and it the psp is within year warranty, sony will do next day replacement via courier, for free, if there are problems with numerous stuck pixels, you just phone them up - i would know, i have exchanged four times!!-
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