I've seen things on the internet saying that the people behind the original PSJailbreak dongle have said that they are going to come out with an update to have the jailbreak run on 3.42. I would like to know if anyone can confirm whether that is true, or if I should just hold off and wait before someone comes out with a CFW or another bypass method?
Mate, of course you should hold on and wait. I doubt the Ps Jailbreak team or anyone will release another exploit anytime soon. As MuscleNerd said once about the iPhone : "If the cat & mouse game escalates too quickly, especially during beta FW periods, nobody but Apple benefits." It is also true about ps3 and sony. We don't have an infinite amount of exploits and if they keep releasing new ones for every firmware that comes out... Soon sony will win for good.
I hate to be the bearer of bad news but... you just shouldn't have updated. Buying another ps3 and selling yours on ebay or something is your best bet.
If they do come out with another update to their backup manager, all that I would want is so that I can update the games, because some updates are needed for games in order to run smoothly, like Modnation Racers.
I haven't updated, I was asking if I SHOULD update or if I should stay where I'm at, because I'm currently still on 3.41 like most other people. I was considering updating to do modified lobbies on CoD:Modern Warfare 2 because I'm into that scene, but I will probably wait a little while longer because of what you said. Sorry if you misunderstood what I said, and thank you for the good answer!