PSgroove has been released to the public as an opened source code. It allows the PS3 (fat and slim) to run homebrew apps and play backup games. Gamers who pre-ordered the PSjailbreak device have already canceled their order when the source code was released yesterday, knowing that you can make your own PSjailbreak device for cheaper. You will need a USB programmer with any of these chipsets:

• AT90USB162
• AT90USB646
• AT90USB647
• AT90USB1286
• AT90USB1287
• ATMEGA32U4

and maybe more.

UPDATE: It has been confirmed that ATAVRXPLAIN also works. In stock and available at digi-key and farnell. PSGroove intructions for ATAVRXPLAIN.

Blackcat USB programmers will work as well as AT90USBKEY. Most of these are sold out everywhere. They cost around $20-$35.

You must load the device with the PSgroove code, you can download it here.

Further instructions located here.

For more discussion about this, go to the forums.