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Whomever told you that you have to hack a PSP in order to add extra folders has fed you a heap of lies as you can add new folders by connecting the console to a computer via USB (you have to add the folders to the actual folder the pictured are originally stored in to make sure they show up in the correct section in the XMB).
Go to your PC and simply create a folder on the root of the memory stick called "PICTURE".
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