The fact that your getting the "The configuration of this psp is incorrect" is never a good thing. Try this though;
1. Follow this guide:http://www.pspmod.com/forums/psp-fir...made-easy.html, scroll down to Section 6 and look for the GEN BYPASS and perform the 2nd Method.
2. Once you have changed the version txt, try updating to 6.60. Post back if it works and if it doesnt work, tell me what error you get