A few hours ago, Sony released a new version of its PSP Firmware, now available to all PSP users when their PSP goes online. The new Firmware, glamorously entitled Version 2.71 is so new that at time of press,
SCE's official pages still haven't listed it as being available.
The update promises two main areas of improvement, the most impressive is the promise of playable demos hitting the PSP in the near future. The demos which are as-yet unannounced, will be saved to Memory Stick, though exact details of this process remain unclear. Two demos are available right now from SCEJ's PSP site when accessed, one for the awesome LocoRoco and a Sudoku minigame.
The second part of 2.71 is an update to the Location Free layer, which promises "Video output can now be displayed correctly when an external tuner is selected," though how this fix works remains unclear.
You should also know that Ver 2.71 requires 20MB of free Memory Stick space and your PSP does not need to be plugged into the power outlet in order for it to run, unlike previous downloads.
If you find anything of interest when fiddling around with your new update, let us know in the forum.