Ok just to confuse you some more.. :-)

I decided to start from scratch, formatted the memory stick, reflashed the PSP, connected to the PS3 and downloaded hotshots golf 2 again. Downloaded both pieces the game and the license. When I downloaded the license this time it actually installed to the PSP before it just downloaded.

Now when I look at the PSP I have an SCUS94476 folder (as before) but this time it has 3 files in it. Keys.bin, document.dat and eboot.pbp...

and the game works.. now if only I had remember how crap it was and not paid the 7$ or wasted 4 hours of my life trying to fix it. Still I guess when they release some original ridge racers at least I know it works.