Well, one great site that you should check out is
QJ.NET - QuickJump Home - PlayStation Portable News - PSP Updates. They have everything about the PSP there.
The first step is to downgrade and upgrade your PSP to get to a firmware that supports homebrew (Usermade programs)
Next, download a program called irshell. This will let you use your PSP as an infared remote.
As for the memory problem, you can download the links2 browser for the psp. I believe this browser doesn't run into the memory problem. However, I personally don't like it as much as the official Sony browser.
When you get around to it, you should check out Dark Alex's custom firmwares. I would recommend using the 3.03 custom firmware. This currently is the most stable (In my opinion).
There is so much the psp can do. pspupdats.qj.net has all the info you will ever need. If you do need additional help. feel free to ask.