Please note, this does not appear to have the necessary patches in place, that are necessary for playing backups. However, that is a very trivial matter, considering the grand spectrum of what KaKaRoTo has achieved. Stay tuned to this post, as it will be updated as more info becomes available.
DOES NOT CURRENTLY ALLOW BACKUPS OR MANAGERS
Custom Firmware PUPs for both 3.55 and 3.41 have been updated, and now use KaKaRoTo's latest script, which fixes several issues users were having. 01-05-11 22:35 EST STD
Download Custom Firmware 3.55 PUP: http://www.mediafire.com/?ja555fhgbe1hkvf
Download Custom Firmware 3.41 PUP: http://www.multiupload.com/8JUHKTOYA4
KaKaRoTo's Git: https://github.com/kakaroto/ps3utils
Download: http://www.multiupload.com/CVYJFWAK91
We can confirm, if you have legitimate v3.55 installed already, that custom firmware WILL still install! 
Attachment 595
Here is the update screen when trying to install 3.55CFW while on 3.55 official. Its a bit hard to read but it says:
Update data of the same version as the current system software was found. Do you want to install the same version?
Version 3.55-KaKaRoTo
Location USB Device
Update data of the same version as the current system software was found. Do you want to install the same version?
Version 3.55-KaKaRoTo
Location USB Device
via KaKaRoTo's Twitter
First CFW working. Grab http://bit.ly/hszcH3, then "./create_cfw.sh PS3UPDAT.355.PUP CFW.PUP". Permanently adds "install pkg files" menu. 38 minutes ago via web
@josuaarzensek custom firmware is what you want it to be, you run the script on 3.55 OFW and you get 3.55 CFW
Latest script should restore game save data, etc.. also with PS1/PS2 support for BC machines (unlike the jailbreak). IT'S DONE! 
Videos of it in action:
This video shows proof you can install 3.55CFW while on 3.55OFW, it also shows the installation of a retail PKG using the custom install package option. Special thanks to to daManptyltd for the video.
Here is what KaKaRoTo had to say about the feat on his blog:
PS3: First ‘Custom Firmware’ now working!
Great news!
Thanks to the tools made by the fail0verflow team (and thanks to sven in particular for his work on the pkg/unpkg tools), the first “Custom Firmware” is now available for the PS3!
I see a lot of questions coming up really fast on my Twitter account, so here are the basic things you need to know :
Because of legal/copyright issues, I will not provide the custom firmware to anyone, however, I’ve made available all the tools necessary to transform an Official firmware update, into a custom one, just grab my ps3utils repository from github, compile, then run :
./create_cfw.sh PS3UPDATE.PUP CFW.PUP
This will take the official firmware, unpack it, modify it, then repack it correctly (requires you to install ps3tools).
This requires Linux of course, but I’m sure others will do it for the masses and illegally release those files somewhere.
The advantage here is that you can do it for any firmware, if you want to keep version 3.41, then give it the 3.41 update, if you are on 3.55 already and can’t downgrade, then run the script on the official 3.55 firmware and it will create a modified 3.55 firmware.
You can put the file in a USB drive under the filename “PS3/UPDATE/PS3UPDAT.PUP” and then go to system update in the XMB, and it will allow you to install the update (even if you’re already on 3.55).
People are asking what are the features of this firmware, it’s simple, all it does is to add those “Install Package Files” options to the Game section of the XMB. It doesn’t do anything else!
This firmware will not allow you to run the currently available homebrew application. Once the homebrew developers re-package their files in a ‘retail’ .pkg format with signed executable, then it will work (this should be coming soon thanks to the work of the fail0verflow team).
Since the kernel is left unmodified, this means that this custom firmware is really meant for future homebrew installation, and it will not allow piracy. I plan on keeping it that way.
This is just the first attempt at custom firmware, and it only contains a minor modification to allow you to install pkg files directly, eventually we’ll get some more options added to it in the future. This is just starting to get interesting!
Enjoy!
KaKaRoTo
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