I have this same game, and it works fine for me. I think i remember that i tried extracting the psarc file, and the game worked, but took like 20x longer to load. As tekken.psarc is >4gb, run it from internal, and don't split it, or extract it. Either back it up again to internal or transfer it to ps3 via ftp so you can get around the 4gb limit.
STOP! Before you ask questions... READ the first post! RTFFP = Read The F*cking First Post
Yes, A 3.55 "jb" (cfw) is available, no >3.55 "jb" or cfw yet.
Yes, A 3.55 downgrade is available. But not to lower than stock firmware! (What it came with)
No >3.55 downgrade is out there yet.