upgrading your firmware that mean changing you PSP fimware from your old one to a Higher FW , exp from 3.55m33 to 3.71
Downgrading mean the revers ; exp from 3.71 to 3.55 .
Some firmwares and especially oldest one allow user to Play downloadable games .iso / .sco ...
I recomend you to use the 4GB card , Because the 8gb have many bugs and run slowly
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