All above is correct and on spot. Update does not require to use QA Flag. This would be your fist step.
(Safe Mode) steps from PlayStation Activating Safe Mode
Turn off the PLAYSTATION 3 by holding the Power button on the front of the unit till the Power light is red.
Touch and hold the Power button, you will hear the first beep, meaning the PLAYSTATION 3 is powering on.
Continue to hold the Power button and after about 5 seconds, you will hear a second beep, indicating the video reset.
Continue to hold the Power button and after about another 5 seconds you will hear a third beep and the system will power off (Power light is red).
Touch and hold the Power button, you will hear the first beep, again for the PLAYSTATION 3 to power on.
Continue to hold the Power button and after about 5 seconds, you will hear a second beep for video reset.
Continue to hold the Power button and after about another 5 seconds you will hear a quick double beep. At that point release the Power button. If you succeeded in activating Safe Mode, you will see a message on the screen saying, "Connect the controller using a USB cable and then press the PS button."
Then from here chose the 6th option (System Update)
3.41(CFW) --> 3.41(OFW) --> 3.55(OFW) -->3.55.4(REBUG-CFW).
Note: place updates file one at a time on USB in folders /PS3/UPDATE/(UPDAT.PUP) like from here: http://us.playstation.com/support/sy...date/index.htm
Once on 3.55.4 place QA flag file in root of usb install QA flag.pkg. Navigate to Game in your XMB and click on Package Manager (It will be where Install Package Files usually is). You will find three options. Chose the 3rd option.
After QA installed find the app and run your ps3 should beep 3 times or so and black screen and in a few seconds show the XMB icons.
To make sure its QA flagged, navigate to Network settings and press L1, L2, L3, R1, R2, and down on the d-pad. (Hit all buttons at the same time)
Now more options will appear in your menu. There is no need to change any settings in this menu. Then install and run the EID dumper and save the eid_root_key somewhere on your USB or your PC HDD. Last is now you can update to 4.xx CFW.