ok look theres a lot of talk about whats new on the update so i just went on the official sony ps website and got this. i hope this clear up most questions anyone has
The PLAYSTATION®3 system software version 1.11 update includes the following:
You can now use PLAYSTATION®Network services.
You can now use the single tap text entry method on the on-screen keyboard for English and other European languages.
[Audio CD Output Frequency] has been added as a feature under [Music Settings].
[Enable ATRAC] has been added as a feature under [System Settings].
[Cross Color Reduction Filter] has been added as a feature under [Display Settings].
[After 5 Minutes] has been added as an option to [Screensaver] under [Display Settings].
You can now select [Full Screen] under [Screen Mode] when playing video files saved on the hard disk or storage media.*
*An appropriate USB adaptor (not included) is required to use storage media with some models.
You can now download and save music and video files on the hard disk under [Internet Browser].
You can now download the following types of content under [PLAYSTATION®Store].
− PLAYSTATION®3 format software
− PLAYSTATION®Network titles*
* The term "PLAYSTATION®Network titles" refers to PlayStation format games (PS one) downloaded from PLAYSTATION®Store and PSP format games distributed electronically.
Simplified and traditional Chinese characters can now be displayed under [Internet Browser].
[Online Instruction Manuals] has been added as a feature.
New for 1.11: [Account Management] has been added.
The method of calculating hard disk capacity has been changed.
* Free space on the hard disk is calculated as 1 GB (1024 x 1024 x 1024) = approx. 1,073,740,000 bytes. As a result, the free space value displayed may be less than the value that is mentioned under specifications in the product documentation. You can check hard disk free space under [Settings] > [System Settings] > [System Information].
Playability status with the PS3™ system has changed for some PlayStation® and PlayStation®2 format titles. To check on the latest status, visit the search site for compatible titles.
New for 1.11: Some PLAYSTATION®Network features have been revised.