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This week has shown the arrival of a new PS3 firmware update, initially little was known about what exactly the update did and what bugs if any did it patch.

Well now the information has been released thanks to an update on the official Playstation website and below is a list of what exactly the 1.11 update accomplished.

General
You can now use PLAYSTATION®Network services.
You can now use the single tap text entry method on the on-screen keyboard for English and other European languages.

Settings
[Audio CD Output Frequency] has been added as a feature under [Music Settings].
[Enable ATRAC] has been added as a feature under [System Settings].
[Cross Color Reduction Filter] has been added as a feature under [Display Settings].
[After 5 Minutes] has been added as an option to [Screensaver] under [Display Settings].

Video
You can now select [Full Screen] under [Screen Mode] when playing video files saved on the hard disk or storage media.*
An appropriate USB adaptor (not included) is required to use storage media with some models.

Network
You can now download and save music and video files on the hard disk under [Internet Browser].
You can now download the following types of content under [PLAYSTATION®Store].
− PLAYSTATION®3 format software
− PLAYSTATION®Network titles*
The term "PLAYSTATION®Network titles" refers to PlayStation format games (PS one) downloaded from PLAYSTATION®Store and PSP format games distributed electronically.
Simplified and traditional Chinese characters can now be displayed under [Internet Browser].
[Online Instruction Manuals] has been added as a feature.

Friends
New for 1.11: [Account Management] has been added.

Other
The method of calculating hard disk capacity has been changed.
* Free space on the hard disk is calculated as 1 GB (1024 x 1024 x 1024) = approx. 1,073,740,000 bytes. As a result, the free space value displayed may be less than the value that is mentioned under specifications in the product documentation. You can check hard disk free space under [Settings] > [System Settings] > [System Information].
Playability status with the PS3™ system has changed for some PlayStation® and PlayStation®2 format titles. To check on the latest status, visit the search site for compatible titles.
New for 1.11: Some PLAYSTATION®Network features have been revised.


Turns out the update was in fact a lot bigger than originally though.

Link: PlayStation.com - PLAYSTATION®3 - Network - updates