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Hacking a PSP isn't illegal. Sharing copyrighted material is.
It's also legal to break your PSP, or throw it through a window, or drop it in a puddle.
If you hack your PSP to put illegally copied games, you've got a problem (and not something you'd find help with here) or illegally copied books, etc.
But there are plenty of legitimate reasons to hack a PSP. An ebook reader is one (assuming you were reading legal ebooks.)
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