You need to be at least version 1.50 to play homebrew. If you are on 2.81 you have to upgrade to 3.03 and then downgrade from there. In order to do that, you need an unpatched copy of the game Grand Theft Auto: Liberty City Stories.
An unpatched game will have the serial numer ULES-00151# on the disk label and have version 2.00 update data on it. Patched ones have ULES-00151#2, have the 2.60 update data and are copies sold from June 2006.
At this time, downgrading to 1.50 via 3.03 and GTA is the only way for those who are stuck with 2.81, 2.82, 3.00, 3.01, 3.02 and 3.03.
To downgrade to 1.50 from 2.81:
1 - Ensure you have an unpatched copy of GTA:LCS.
2 - Get the 3.03 updater here, put the EBOOT.PBP in the GAME folder of your memory stick and run it. While you're about it, you should get the 1.50 updater here as well.
3 - After updating to 3.03, get the downgrader from here and follow the instructions described in the readme document.
4 - If you did everything correctly, you should reach version 1.50 without any problems. When the downgrader finishes and you restart your PSP, a corrupted settings message will appear. Just press circle and then you will be asked to input settings like when you first got your console.
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