well to run CSO/ISO games you must have Custom Firmware, and your on Official firmware
and the only way to go to from OFW to CFW is with a tool called a Pandora's Battery, which requires a bit of time to make but well worth it. and yes you can yuse this update with your PSP but you justy wont be able to play or use any of the Hombrew stuff at sites like qj.net