I have done it finally.....hacked the PS3 to play backups!
YouTube - PSFreedom using iPod Touch 1G and running backups....
used this tut and files....
1G ipod touch tut....you have to jailbreak using Blackra1n or it wont work, trust me I know first hand
YouTube - PSFreedom on iPod Touch iPhone Tutorial
Ipone 1G and 3G only....
YouTube - Install Psfreedom With iPhone Tutorial EASY
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