128w ago - Update: According to several members (including jensen76, evilsperm, and sk group) when you downgrade a PS3 with the Modified 3.41 PUP (below), it currently cripples the Blu-ray player functionality. Some additional PS3 Blu-ray fix updates are outlined HERE, however, a more stable solution is still being worked on.

To quote from garyopa on one work-around: "I was able to restore one machine I had, by copying over all the files I had in the /dev_flash2 and /dev_flash3 back to the HDD, that I had saved before when it was on v3.41"

Forum member p666 also has expanded on the PS3 Blu-ray fix a bit HERE...

128w ago - Since the release of PS3 Firmware v3.55 there is no sense in keeping the master key a secret any more - it has been released, along with unencrypted payloads, and a promise to release the source-code by PS3YES for a free PSGrade PS3 downgrader.

Download: PSGrade / PSGrade PS3 Hex Codes

Of note, the downgrade hex will only work on PS3's with a firmware of 3.50 or below.

The same team which brought the PSN spoof for online support of jailbreaks now has also brought us a Free Downgrade HEX for the PS3! PS3YES has released un-encrypted HEX files for downloading.

They promise open-source code to be release soon, but find below pre-compiled HEX files:

PSGRADE AT90USB646-16Mhz Teensy++ 1.0
PSGRADE AT90USB1286-16Mhz Teensy++...

128w ago - As a follow-up to the Infectus and E3 Card Reader PS3 Downgrader news, today the PS3 Break Team (and the PS3Key/EcliPS3 Teams) have also confirmed they have a PlayStation 3 Downgrader for 3.50 Firmware consoles incoming.

Below is a picture, and the announcement from their site, linked above:

Currently, news spreads on Internet regarding some brand dongle companies have capable of downgrading PS3 firmware from v3.50 to v3.41.

PS3Break dongle is ultimate testing. It will be officially launched in the next few days! please expect together !

So it appears all of the PS JailBreak PS3 modchip clone devices will utilize the PS3 downgrader functionality, and here is to hoping a free version also surfaces soon.