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I have the ps3break v1.2 dongle too.
Knowing that i couldn't have any problem since I never upgraded to a 3.56+ FW, I went into service mode.. even if it was written (in system information) that I was on 3.41, I assumed (from what I read) that I was on the 3.55 FW. So, I used the lv2diag_355 and I inserted the modified 3.41 PUP (from the DGF rar). Everything worked fine. I got out of factory mode and could update to a 3.70+ FW from an original CD, and I'm now back on track playing original games. Thanks for this thread, it was really helpful.