Install the system update by highlighting it, selecting it and following the onscreen prompts as they appear.
Updating software on psp
Installing a Custom Firmware on your PSP Go has never been so easy.
In this page I’m describing the easiest possible way for you to install the most reliable Custom Firmware on your PSP: Pro CFW.
Installing Pro CFW on your PSPGo is simple, free, and is not much risky than installing a Firmware update on your device.
I recently bought a Sony PSP and after downloading some games to it from my PS3 I got a message along the lines of "This software requires update version...whatever" So I googled "update PSP" and got the official UK Playstation website and downloaded the file called EBOOT.
PBP the Sony website said "copy it to your memory card to perform an update". Problem is Sony don't tell you that you have to copy it to a specific location!!
The guide is as below starting from the very beginning - you can skip ahead if you already have a formatted memory card installed.1. If it needs to be formatted, the system will notify you; follow the on screen prompts to complete the formatting process. Connect the PSP to your PC or Apple using the USB cable.
Allow the computer to recognise the memory stick.3.
Access the memory stick and locate the PSP folder and open it. Open that folder and you should find another folder labelled UPDATE.
If you don't find these folders, you will have to create them manually.
You must use all-caps to name them - PSP / GAME / UPDATE4.
Copy the PSP system update you have downloaded to the UPDATE folder5. Locate the Game icon on the PSP and access the memory stick icon in this column.6.