whoa whoa slow down man with the Caps!.
it's normal if you get a corrupted data in the games. so dont worry.
your PSP crashed when it's extracting 340.PBP.
make sure the size of 150.PBP and 340.PBP are the same as bellow:
150.PBP : 13,900,225 bytes
340.PBP : 22,048,510 bytes
i'm assuming that you have a corrupted 340.PBP. try downloading it again or download any 3.40 offical update eboot and rename it into 340.PBP.
Also, refer to this thread
HEREand check if you have a fake memory stick.
Good Luck!
**Please say what firmware you are updating "correctly", as in say that you're going to 3.40
OE-A, not 3.40. Thanks!