I don't know why it would start doing that, but it isn't possible for Sony to force a patch into your PSP without you knowing it, is it? I've been running OE-C fine for months, but the other day when I loaded up Chrono Cross the buttons stopped responding every time at the screen where you pick which memory card to load. I'd then press the home button and that would work but I couldn't move down to highlight the option to exit so I'd have to turn off the PSP all the way. Then when I loaded up my Loco Roco UMD the buttons once more became unresponsive after getting into the menu screen.
Is there something in UMD's that tries to update your system and messes it up? I don't think I used any UMD's in it until Loco Roco and shortly after is when the problems began. I know it's not the same exact problem as yours, but they could be related.
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