sinnershanky, I know that you said that you didn't want to upgrade to the latest CFW, but bro a lot of the problems your having is due to the fact your on such a old firmware and MM. First off you dont even need to use the dongles anymore with the PS3 the system you are running should atleast be updated to 3.55 CFW NOT 3.56/3.60 OFW.
To pull this off make sure your 3.41 FIRMWARE to the original if needed. To do that you need to put create folder on the USB Stick with name PS3 once you created the PS3 folder go inside that folder and create a folder called UPDATE. The folder UPDATE is were you will be putting the PS3UPDAT.PUP. To further explain the PS3UPDAT.PUP is a firmware file it has to be in the PS3\UPDATE directory on the usb stick for the PS3 to read it. This file can be either a OFW or CFW.
I recommend installing this firmware (http://depositfiles.com/en/files/11eygdt9e) its the latest NAIMA CFW that was just released today. The reason I am recommending this is the fact you don't even need to do anything like in the past to accomplish getting on PSN this firmware does everything for you which makes the task alot easier.
I assure you its safe I have been screwing around with the firmwares for quite some time now and I haven't had a bricked FAT/SLIM system yet! Anyways if you do decide to install this download the file (LINK ABOVE) extract it with WINRAR OR 7ZIP then put the file PS3 on a usb stick and install.
If you dont know how to get into service mode all you do is with the system off press and hold the power button wait for the system to shut off then release the power button the again press and hold the power button wait for the system to make 2 fast beeps then release the power button.
it will ask you to press the PS button THIS IS IMPORTANT plug your wireless into your system with your usb charger cord that came with your system. once that is done press the PS button to continue go down to system update and select that accept the agreements and allow that to install that will put you on the latest 3.55/360 CFW!
message me if your having issue I will be more than welcome to walk you through them!