As of this writing (summer 2006), the only downgrading possible is from version 2.00 to version 1.50 firmware. Version 1.51 and 1.52 firmware must first be updated to version 2.00 before the firmware can be downgraded. A downgrader for firmware versions 2.5 and 2.6 is in development.
Downgrading a PSP's firmware to version 1.50 allows all homebrew programs to run on the system. Only some homebrew will work on versions higher than 1.50, and then only through an exploit of the game Grand Theft Auto.

