Well i was able to edit the .SFO on a different computer, however saving it and reopening it doesn't show any changes. I've checked to see if the file was "Read-Only" and it wasnt.
I replaced the one on the PS3 with the one i edited and a different eboot and it still asks for 3.42. My guess is that the .sfo editor needs to be updated because sony encrypted something in the new SFO's.
Any dev's reading this want to give some input? I'll gladly offer $5 for a working netflix app for my 3.41.