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To update a chipped PSP, a person must use the system update function manually. From there, the chipped PSP must be upgraded to version 6.60.
80020148 is the firmware error code. Try running the latest update, as some games won't let you play them unless you are running the most recent update.
Because it updates the PSP not the network.
You need the latest version to be able to access the PSN, so just update to the latest, it won't affect your ability to use UMD games.
You can't update a psp without a working battery. It'll state that the battery is low and you need to charge it.