1.You will be able to use homebrew or emulators
2.No
3.If you then updgrade to 3.0x oe then yes
4.Your psp's intenal memory is broken and beyond repair unless you are on 3.0x oe
5.There are a lot of emulators for psp including sne, mega drive, ps1, nintendo 64 etc
6.It doesn't mean that much at the moment.
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