a guy on another forum said this:
Anyway, there will be a save state plugin for KHBBS which will only work on PSP 2000 and 3000 because it has more memory compared to PSP Phat 1000.
But, unlucky that you have PSP Phat 1000. You will not able to save the game even through you are using this plugin.
They also said this plugin will be released tomorrow... Any questions or though can be discuss in here.
EDIT1: The game can still be played on PHAT PSP's, but it won't be able to save...
i have psp 1004 lucky psp 2000 and 3000 users