Dex or dex converted consoles cannot playback DVD or BD movies. Two technical limitations exist. First Official DEX firmware lack some components to playback movies. Second the console type setting that is changed to make a console a dex also controls the playback region. So a console cannot be a DEX console and a north american retail console at the same time for example.
As far as the disc burning goes you can burn discs using the software and it will work the same as using the BD-EMU. That means you need a game update installed on the PS3 hard drive or a true debug self (or EBOOT.BIN) on the disc to run. Currently the tools to decrypt selfs aren't complete in the decryption of the .ELF section headers.
So if i make a decompile a retail update package downloaded from the sony update servers and create debug update file using psn_make_package_npdrm.exe will it work with DEX? Also if i make a PSN profile would i be able to sync the trophies acquried on my DEX console onto PSN on a OFW machine
You can repackage a retail game update on a DEX and it will work fine. You can boot an original retail game disc in a DEX system fine. What you cannot do is copy the retail disc contents and burn (or use BD-EMU) with the PS3Gen tools and expect it to run. Retail eboots on disc have flags that say only run on authenticated sources which does not include burned discs or BD-EMU.
So in short you need either a retail game update or a complete debug eboot to run on DEX as a copy. It doesn't make a difference if you use the BD-EMU or a burned disc.
Just to clarify if i install the latest debug game update package made with psn_package_npdrm.exe the game will the game boot on a DEX console?
On an real DEX you can use your retail PSN account the same as a normal CEX machine. And yes that means that trophies will sync. I can't say if this works with a system converted to a DEX. That entirely depends if Sony keeps a white list of valid machines that sign into PSN/SEN.
Any game update (retail or debug) as long as it is valid and greater version that the disc eboot will run on a DEX console. That means you can take the latest game update for retail, extract it to a directory rebuild the package using psn_package_npdrm, install the package on the DEX console and it should boot the game. You can also install a real debug update it will boot.
I can confirm Resident Evil 6 PS3-DUPLEX working perfectly on a Kingston USB 32 GB Thumbdrive. So, for people having troubles with an external HD, it's a funny, yet working method for running BDEMU images. So you could get a 64 gb thumbdrive to save full 40 gb BDEMU images like Uncharted 3.
Of course the transfer is slower but it really works. And remember that ps3 only supports USB 2.0 anyway. I did this because i'm having a hard time finding a really good External USB HD.