Changes from the PS3 Debug Firmware 3.20 Update ReadMe File include:
New Features - System Software (GUI) • The resolution for 3D video output has been supported. In this release, the 3D rendering is supported by the following features:
• Features that support the 3D rendering:
• Features that the system displays such as the system software that is displayed when the PS button is pressed during gameplay(GUI), or notification or error messages displayed on the upper right on the screen
• Features that do not support the 3D rendering: System utilities that are explicitly called by game applications such as the save data
Note that the display may be corrupted in all GUIed system utilities when the 3D resolution is set.
Menu of the System Software (GUI) • [Settings] -> [Debug Settings] -> [3D Video Output]: [Automatic]/On
Do not use this menu item because it is only available on the devkit.
Specification Changes - Check menu in the Game column • The following specification changes have been mage in the check that is available from the Check menu in the Game column:
• It is now allowed to mix a library for SDK320 and a library for SDK310.
• It now warns if the SDK version of the SPU is smaller than that of the PPU.
• The automatic setting feature now supports the resolution for the 3D video output through Display Settings -> Video Output Settings. To output a 3D video, make sure to set the Display settings again.
Also, do not forget to select "HDMI" for the TV terminal and "Automatic" for the resolution from the Display Settings.
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I can also confirm debug/test 3.20 firmware does have other OS intact unlike retail 3.21 which removes Other OS support. You can upgrade if you have a debug unit. Let's say 3.20 removes other OS, you can always downgrade back to lower firmware up to 2.00 on debug unit. If you want to go lower than 2.00, you need the special 1.50 and 1.00 firmware for debug.