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Ok guys i was messing with charlie proxy, and i looked at the request to SONY. turns out its a mere SSL HTTP POST request. i always thought it was a socks connection...
So I realized that we can use this to spoof our login information..
Since the PS3 is a open connection to us now, we can view and edit anything.
If we get banned, we can simply edit the data for a diff console, among other things...
Simply sony is royally screwed and there is no way for them to fix..
Heres a screenie of my web proxy
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UPDATE: I am logged in PSN ATM finally. This can be done on ANY FW version by the looks of it!