Wow this is weird..
First port of call..
1. Go to recovery menu
2. click advanced
3. Click Reformat flash1 and restore default settings
That's the first port of call
Otherwise you may have to install the 3.71 pandora Installer by hellcat and try and restore the battery again (start PSP from AC adapter and shove battery in when the program is running then click restore battery.
If not and if you are from australia. post it here and i'll fix it if you pay postage both ways.
Wally
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