[Gandalf]

That battery is doing exactly what it is supposed to do. The tool battery(pandoras battery) when inserted instructs the PSP to boot up from the memory stick instead of the internal memory. The magic memory stick has the boot up files and firmware installation files on it. You have to use both of these to install the custom firmware. The service mode has been achived when the power light comes on but it has to have the boot up files and installation files in the memory stick in order to work.