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well if you update from cfw you lose update via media storage so you can never get cfw again

I did it straight from 3.55 CFW to 3.56 with out doing anything extra, you just wont be able to switch patches, but you still can host CL

YES !!! , it does matter
possible : Bann , Lose of USB update Option , Brick (Few reports) , Not Updating AT ALL (Few Reports)

Hope this helped you out

look for my -TUT- on the General Section how to be save with updating to 3.56

Grtz.MysticalX & Team-Blizzard

so can i just update to 3.55 normal and then update to 3.56
or do i have to format my system?

no it doesnt matter, i went straight from 3.55 cfw to 3.56 no problems whats so ever and i still can update via media storage device.

If i was updating.. i wouldnt bother about formatting n shit. All i would do is go from 3.55 cfw to 3.55 ofw then update to 3.56

just do a quick restore to get rid of the homebrew and update its alot faster than installing ofw and me and alot of otheres used this no problemes at all