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This only works on OFW 5.03 so if you have firmware greater than 5.03 then you are out of luck. :\
I'm pretty bored and well I've seen people having trouble with this, so I decided "Hey why not just write a guide".
I prefer to use 5.03 GEN-C over the cfw enabler, because cfw enabler flashes your settings and 5.03 Gen-C doesn't and I think that's a pain to keep redoing them.
What you need:
A Psp 3000 or a slim with the newer motherboard
A computer
The 5.03 Update which you can get
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Chickhen R2, Which you can get
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5.03 GEN-C, which is
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I cannot stress this enough, you need PATIENCE!
First, backup all of your memory stick files onto your computer, then format your memory stick.
Then open up the 5.03 update and place the eboot in PSP>GAME>UPDATE>Eboot.pbp
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Now exit usb mode and click on the eboot (GAME>UPDATE 5.03), then run it.
Now you should be on 5.03 Original Firmware.
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Open up the chickhen archive and put the h.bin on the root of your memory stick.
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Now open the SLIM folder and drag the ChickHEN to PSP>PHOTO, IT MUST BE IN PHOTO, NOT PICTURE.
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Now here comes the tough part, now exit usb mode and click on PICTURE, and wait for the EGG subfolder picture to load and then click on it.
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Two things can happen, you can Freeze which is totally normal, you've got to just keep trying.
Or you can get, depending on your background, a green flashing bar-code like image on your psp.
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Let it do it's thing and then your psp should reboot.
Congratulations, you now have gotten past the hardest part.
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With 5.03 GEN-C you just put the folder into X:/PSP/GAME and run it.
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If you followed the instructions correctly, your now have "Custom Firmware" on your psp allowing you to run homebrew and run iso's on your psp.
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If you have any questions feel free to ask.
~Warlock