PlayStation Network has been added as a category on the XMB.
PlayStation Store has been added under PlayStation Network.
Account Manegement has been added under PlayStation Network.
Sleep Timer function for Music has been added.
USB Auto-Connect Feature has been added for PSP 1000 and PSP 2000.
A new full-screen keyboard has been added.
A new optional XMB Background has been added.
A new video format is supported.(MPEG-4 AVC(H.264) Video Main Profile (AVC CABAC) in 640x480 pixels)
Title Display feature has been added under Settings.
Backlight Auto-Adjust has been added as an option under Power Save Settings.
Screen capture feature has been added as a feature within games and the Internet Browser, this is up to the game developer or web site developer to support it though.(Currently there no games or websites that support this feature)