I was browsing qj.net and stubbled upon this:
http://pspupdates.qj.net/TVSP-Releas...g/49/aid/32792
Basicly, it is a psp app that connects to the av stream off of a free program called DScaler (no relation to the NDS) that runs on your pc. DScaler uses your computer's video capture card (i.e. your computer becomes a t.v.) and will re-brodcast a stream to this homebrew program. It looks as though it is for 1.5 only, but may work under the e-loader (untested). So, it doesn't "hack" location free, it's just a purely homebrew way around it. Remember to move the included ini file to your DScaler directory. Also, in this release, there is no sound. This will be included in the next release.