PS3ITA CFW v1.1 Changes include the following, to quote roughly translated:
Changed one patch.
Fixed error 80028f17 (All PSX games downloaded from the store now work!)
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As i said in the above post. I attempted to access the recovery menu, and instead of jumping to it, it instantly says "Your PS3 turned off without completing its update, Continueing the update" and just continues to go for it.
And, I wanted to try the HDD swap seeing as the ONLY time it has not tried to continue the CFW install is when I had the HDD out of the console. It would sit at a black screen for a few moments, Then loads up the startup screen of the PS3 then says "Hard drive partition not found".
You ARE talking about the recovery menu via holding down the PS power button and beep twice, into the menu with 6 options.