Lazy lazy lazy fella..
Using a little search wont really hurt.
You got time on your hands and the resources on this site as well.
But to answer your query:-
1) Its hackable.
2) You cannot log onto PSN unless you have the latest of the f/w.
Yes. He can install 3.55 CFW on it. If he updates the console to any firmware above 3.55, then he can kiss the CFW good-bye. So ask him to stay away from PSN, if he wants to install the CFW on it.
2. Transfer that update file in you pendrive in a path /ps3/update folder.
3. P.s- the pendrive has to be formatted ina FAT32 file system even if it is fat32 already.
4. Insert the pendrive in your ps3 system.
5. update using storage.
6. After installation repeat the steps after downloading CFW Kmeaw 3.55.
there you go! you should spend some time on google though. And you 'll have to install multiMan and Blackbox Ftp server for your games to run and file to transfer.