Ok, I have the same problem after updating my firmware to the latest. I don't have the Folding@home, there is no way to delete the Life with Playstation. I tried downloading Life with Playstation and deleting it after, I still didn't get an opton to totally remove it and get the Folding @home back. (tried all buttons)
Please help... I want to be able to download demos on my PCs (much faster), and then transfer it to the PS3. I see Folding@home is the only way in one of the tutorial guides. Please help how we can get the Folding@home back... if we need to roll back to previous version, how is that done?