Noob Central

First off, I would like to highly recommend QJ's PSP Homebrew Dictionary which does an amazing job of defining some of the homebrew scene's most used terms and phrases.

What is CFW? (CFW Database Part 1)
Cfw means  "Custom Firmware". If you have ever updated your psp using network update or a computer, then you have updated your firmware. Custom firmware is a modified (hacked) version of sony's operating software which allows execution of third-party unsigned code as well as new integrated features.

How do I get CFW?
The most common and safest method is by using pandora. I highly recommend it.

What is Pandora?
Pandora is the name of an exploit found a little over a year ago. (officially released in august 2007) Since it's release, major progress has been made in the development of pandora and it is now possible to recover virtually any psp that has been non-physically damaged. Pandora works with a modified psp battery which causes the psp to boot a custom IPL from the memory stick. After booting into this new environment, almost anything can be done including formatting of the psp's internal memory as well as installation of cfw.

How do I get Pandora?
Pandora must be made by using one of two methods. The most common and well documented method is by using a previously hacked psp to run a pandora installer which prepares the memory stick with the correct files and then using a battery utility to modify the battery for use with pandora. The second method which was developed for people without access to a previously hacked psp and involves what is referred to as "hard-modding". This means that you must carefully open up your psp battery and clip a small soldered connection without touching anything around it. (this is a very risky process because you could very easily destroy your battery if you slip. I recommend it only to experienced modders and the most desperate of people). After modding the battery, you must find someone who will send you premade memory stick files. (they can not be offered for download due to legal copyright issues) You may also be able to find certain windows/linux based utilities to format and prepare the memory stick for you but I cant speak as to the reliablility of these programs. Batteries can also be purchased online through sites such as ebay. Note: some batteries have been reported to be pandora proof against soft modding (using a prehacked psp). But all batteries should work if hard-modded. Pandora software can be obtained at Dark Alex's website.

I have CFW already, where do I put my game hacks?
That depends on which cheat device you are using.

What is a cheat device?
A cheat device is a plugin for cfw which allows the user to veiw and modify the contents of RAM (random access memory) while a game is running. Almost every hack works by modifying the RAM of a game while it's running with very few exceptions. Because of this, hacks must be activated within certain time slots or you may freeze your psp and be forced to restart. (Note: even though a hack may be activated at the right time, there is no guarantee that you will not freeze. sometimes, you will freeze for no apparent reason. shit happens) The most common and widely supported cheat device is NitePR by Sanik. I highly recommend you use this as almost all hacks are made for it. Other cheat devices include CheatMaster (hard to find) and CWCheat (obsolete).

How do I get NitePR?
NitePR can easily be found and downloaded by using a google search. (If you cant do a google search, you dont belong here) The current NitePR version is Rev K. Once you have obtained a copy of Rev K, you should read the (hopefully) included readme that came with your download. It should tell you where to place the files and to activate the plugin by using recovery mode. If you would like, you can go here and follow my instructions using my NitePR Auto-Installer. (Note: I will not provide support for the auto installer yet as it is currently in beta meaning under developement)

How do I get into recovery mode?
Completely shut off your psp by holding the power switch down while its on until it turns off. While turning it on again, hold down the clear "R" button. (aka right shoulder button) If you have cfw, this will show you a black and red menu with settings for your cfw.

I have NitePR, where do I put the hacks?
Hacks must be copied/pasted into text files which should be named after the game ID of the game the hack is for.
A basic hack should look similar to this:
   #Hack Name
;Hack Creator
0x007894DC 0x77
The text file should have a name similar to this: UCUS-00614.txt
A list of game IDs (for naming your text files) can be found here. Note: not all games are in the list
Now, the real answer, the text files should be placed on your psp memory stick in "ms0:/seplugins/NitePR" where "ms0:" means the root of the memory stick. (Note: NitePR can only be activated in game and should be opened by pressing the Volume + and Volume - keys at the same time.)