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Before I Buy An E3 Flasher

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So I just want to get some stuff out of the way.

So downgrading then updating the PS3 will format the PS3 in one of the steps, and theirs no way to avoid this step without 2 HDD's and the Limited Edition of the E3 Flasher?

Secondly, regarding PSN from what I know in-order to use PSN with a CFW PS3 you need to downgrade to 3.55 and then update to the newest firmware.
Also is their anyway to lower the chances of you getting banned on PSN or is a modded PS3 detectable and theirs really nothing we can do besides play offline?

But none the less I'm able to do all this with a normal E3 Flasher Kit and 1 HDD with my PS3 Slim (Factory setting of 3.41) ?

Thanks to whoever answers my questions and Merry Christmas.

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