The upgrading process was problem-free. The trouble comes after the upgrading is complete. I can no longer find my games and saved games data on my PSP's menu even though the files are still on my Memory Stick.
After I did some reading online I found out that on firmware 3.80, Sony decreased the size of FAT driver for the Memory Stick from 185KB to 95KB (to make room for new features perhaps) and they might have screwed something up.
My Memory Stick is formatted to FAT, and it might explain why I can no longer see my games and saved games in the PSP's menu. After I reformatted my Memory Stick to FAT32, everything was back to normal.
Also, you can't play PS1 games on 3.80. Current Popsloader (PS1 emulator) is not compatible with 3.80 yet, have to wait till Popsloader written for 3.80 released.
So, if you don't want to use FAT32 formatting for your Memory Stick
(some people say that FAT is faster than FAT32, I didn't notice any difference) or play PS1 games, don't upgrade to firmware 3.80.
actually u are wrong. i formated mine to FAT again and its still working. so its still not limited to FAT32... just the file allocation is a bit diff.