1) If you're buying a used PSP look at the firmware to tell if you can downgrade. Firmwares up to 3.03 can be downgraded. If you can downgrade it you can then upgrade to a custom firmware and do homebrew and all that good stuff

2)You never know what you're getting when you buy something off the internet so I don't know what to really tell you there

3) Read this: http://psp3d.com/getting-started-hel...r-getting.html that'll help determine by the box if you can downgrade and everything. see post number ten

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