Don't use Waninkoko's rushed CFW, it's buggy as all hell. Use Wutangrza's, then install geohot's jailbreak over top of it, then use kmeaw's lv2 patcher pkg to patch lv2 so BM's will work. Here is a small tutorial (no links, google the CFW's and such, they are EVERYWHERE) so people who don't know what they are doing don't brick their ps3 -
1. Install 3.55 OFW (Sony's official 3.55 firmware) via the restore menu.
2. Install a pre-built Wutangrza CFW or patch OFW yourself using flukes1 peek/poke method (many tutorials online for this) via the restore menu.
3. Install geohot's jailbreak CFW over top of Wutangrza's CFW via restore mode or the XMB.
4. Get a copy of lv2 patcher by kmeaw which can MORE safely (unlike Waninkoko's) patch lv2 so backup managers (multiMAN, Gaia Manager, etc...) can work again.
5. Run the lv2 patcher pkg one time prior to running any backups (only need to run once).
6. Load backup like you normally would with backup manager of choice
* Some backups require a ps3 disc (any game disc will work) in the BD, some can be patched and ran completely disc-less.*
Optionally, the newest versions of multiMAN and Gaia Manager have kmeaws lv2 patcher built in which removes step 5 completely. However, these seem to be a bit buggy at times causing periodic freezes when exiting the BM and going to the XMB. Using the standalone lv2 patcher pkg seems to be the most stable route still.
I would take caution running backups online (even legit ones, which they should be anyways

) There is a lot of speculation that Sony may lay down the ban hammer on ps3's accessing their psn network with consoles running custom firmware... if they can even detect it, which is the latest *hot* debate.
I urge anyone that wants to run CFW to HIGHLY research the 2 CFW's (Waninkoko's, and Wutangrza patched with peek/poke -> geohot -> kmeaw lv2 patcher) before installing Waninkoko's CFW as outlined by the original OP. Many of you will see that there have been ZERO reports of bricks using Wutangrza's CFW, and is a much more stable firmware compared to the hundreds (probably thousands) of bricked consoles caused by Waninkoko's CFW which is buggy as all hell even when it does install without turning your ps3 into a $300+ door stop.
Best of luck everyone who tries this. If you need help along the way toss me a PM. Sorry to hijack the thread, but this method is MUCH safer, and more reliable than the one outlined so I felt the need to at least let everyone know about who already didn't.
EDIT: Forgot to mention, yes, you CAN do game updates when running off a backup manager this way. If there is enough demand for a full tut on NGU on installing all the needed CFW's and patches to do this (with links to the CFW's) then I will gladly type up a tut.