PSP Update help.

I'm a rookie to this whole psp busisness. ive just downloaded version 3.40 for the psp from yourpsp.com. i currently am running 2.81 or sumthing. the instructions from this internet site say to save the update/EBOOT file in PSP>GAME folder. I have formatted the memory card and evervthing. However, i check on the psp settings and it still is 2.81. I really dont know how the F*** to work this thing like a pro, so i would appreciate help from one. Thanks.

Just like above posted. You only just put the installation file in your PSP and have not install it yet.

 Do take note that while installing/updating, do not drop your PSP, plug out the charger or anything that will shutdown your PSP. If not, that will cause permernant damage to your PSP.