Hi,
From what I've heard a 3.50-3.51 PSP runs at normal CPU speed, it only raises when you play a game designed for the higher CPU speed.
Currently that's only Ratchet and Clank size matters.
Second, if you install a custom firmwire on the downgraded PSP you can easily change the CPU speed to the correct one.
So your collague is wrong, your CPU speed won't drop and you can raise it if you want to play a game that requires the higher speed.
Hope that helps
