The select ' Update via Storage Media ' and then let the PS3 install the 4.82 update, once done you need to do it again but the PS3 will not let you do it again from the XMB so you will need to boot the PS3 into' Recovery Mode ' and select ' System Update ' in there. Then before you do anything else make sure that there are no disc's in the BD drive, then disable the internet connection of the PS3 in the Settings > Network column to prevent any forced update from the internet.
And put the USB into the right side port> the one closest to the BD Drive. Then you need to format a USB Flash Drive to FAT32 MBR ( Not GPT!! ) and on the root of the Flash Drive create a folder called PS3, then inside that folder make another one called UPDATE, then place the PUP file in their and make sure its called PS3UPDAT.PUP. You can find 4.82 OFW here : !dIAgQA5D!HdV3Zxr5rEaNgt1agKssXQ-9TRH_WMYxCUOvWTbz2QA As you are on 4.81 OFW what you need to do is update manually to 4.82 OFW, but you need to install it twice in a row to prevent errors while jailbreaking: But no you cannot just directly install 3.55 as an update as the PS3 will not allow you do this on OFW. Click to expand.This means your PS3 is CFW compatible.