Sony has released a firmware update for the PSP in Japan (a few days ago) and now in North America. However, there isn't really much of a system update in PSP 2.01 from Sony. In fact, the only thing that 2.01 firmware does is fixes a "security flaw". That security flaw is the same one that is used to run several small homebrew applications and loaders on PSP 2.00.
So to put it simply, if you want to run homebrew on your PSP, do not update to 2.01. You can't run homebrew on anything newer than 1.50. However, if you have 2.00 firmware you can downgrade to 1.50. Read how to do that using this guide.
Sources:
PSPUpdates
PlayStation.com












