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It says you need to update to use Netflix, but I'm currently waiting for 3.56 CFW which should come out sometime this week :p
1. Click Netflix.
2. Halfway through loading Netflix it should say you have to sign in.
3. Click sign in
4. It should say you need to update
5. Press O
6. Easy as That

PM if your a have any problems
Sony deserves a /facepalm