Have a look at the post
HERE!!! to find out how to downgrade to f/w1.5.
You should be able to upgrade to f/w 2.0 using the demo UMD that came with the PSP.
Yes, you can get 2Gb memory cards but I would recommend only Sony or Scandisk makes.
Once you have downgraded the PSP firmware you can use a program called "FASTLOADER0.7" to make images of UMDs THAT YOU ALREADY OWN!!!
You don;t need a memory card reader. When you connect your psp to your PC you can access the memory card folders through explorer.
Regards
