Since you have a PSP 1000, you are able to create a pandora battery without hardware mods, software can do this for you.
At first, use the "rains" program ive linked in my last post, and create a MMS with it (its important that the program does not return an IPL space error, if it does, get another memory stick (originals prefered)), formatting isnt necessary, then go into the recovery menu of the 5.50 GEN CFW and search for "create pandora". If its not in the recovery menu, check the VSH Menu for this option, I am 100% sure that its either in the VSH or recovery menu at 5.50 GEN CFW. If you've done both, remove the battery of your PSP, keep the L trigger pressed and then insert the battery into the PSP. The PSP should boot from itself into a menu, which will have an option to install 5.00 M33, 5.00 OFW, and other options.
One is called "nand operations", select this. Then select "create new ID Stroage" and select your prefered region (afaik are europe, USA and japan available). Enable your wireless trigger at your PSP, and then create your new ID Storage (enabling wireless is necessary for getting your real MAC address. If you are done, you can reboot into your CFW and create a "normal battery", the option should be right next to the "pandora" option. The "update error" should be gone and you should be able to update to the 6.60 (ME) firmware.
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