Nearly there…
After downloading and installing PlayStation 3 firmware 3.61, all PlayStation Network users are required to change their passwords. Here’s how to do it.
First, sign in by entering your sign in ID (email address) and password for you PSN account. Sony wants you to make sure you can receive messages at this email address.
Select OK from the screen that asks you to change your password. A screen for entering a new password is displayed. Then, follow the on-screen instructions. After you’ve changed your password, you’ll be able to sign in to PSN.