do i need a proper ps3 dongle like PS3Break or can i do it with normal usb flash?
You need a Downgrader dongle and a FAT formatted flash drive. Just read the articles I linked above and you know that.
Great news, downgraders updated, now we just need a CFW 3.55 with JB enabled.
I think it's safer use geohot's cfw than downgrading, but it's only my opinion.
So, will I lose any ability to play PSN games if I downgraded?
I was thinking if upgrading, getting on PSN to get a few games then downgrading again.
Also, I've installed a few signed PKGs and homebrew. As they work fine in 3.41 will they still work in 3.55 or will I have to reinstall them with 3.55 versions?
no it won't turn on... it turns green for 1 sec and it turns immediately red again no screen...