And maybe it's because the PSP is past it's best... But 5 hours without a response isn't as bad as something like the iPod section (it's more like 5 days there).
Anyway, yes, multiplayer in ISOs should work perfectly fine.
PSP, all the way from 1.00 to 5.50 GEN D2 - DS Lite w/ M3DS Real (M3 Sakura v1.34)
PS3 3.01 - iPod Touch 2G 16GB Jailbroken - Xbox 360 60GB - PC, Q6600, 3GB DDR2, GTX260 (216) 896MB
PSP, all the way from 1.00 to 5.50 GEN D2 - DS Lite w/ M3DS Real (M3 Sakura v1.34)
PS3 3.01 - iPod Touch 2G 16GB Jailbroken - Xbox 360 60GB - PC, Q6600, 3GB DDR2, GTX260 (216) 896MB
The PS store does work, actualy now that I think about it. As for the web broswer all it does is show a white screen for awhile then it says that the connection has been timed out.
It's been doing this since I got CFW about 3 months ago, I just did't really care much about it till now.