PSP games are region free, UMD movies on the other hand are region locked.
Depending on the application you might not need to have 2 folders as the newer apps are created with custom firmwares in mind and some of the older work just fine under the CFW without the need for kxploit.
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Asus Eee PC 1000H
Sony PS3 80Gb ~ Sony PSP ~ Nintendo Wii ~ Nintendo DS Lite
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