That is the name you enter for use at the PSN shop and for all online gaming. It's your nickname, not your account name, which you can always alter or create a second one. The name you use to login for PSN.
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Hello Demon Cleaner,

Is it required that you connect the PS3 to the Internet, and how does that exactly go?
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That goes pretty automatically in the network settings of the PS3, all you have to do is to connect it to a router. You can then chose if it sets the PS3 up automatically or you can do it manually like me, as I don't enable DHCP. Works pretty good.
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So how do you login to the PSN shop?
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If I'm right when clicking on the PSN Shop icon it connects automatically or it asks if you want to connect, as otherwise you cannot enter the shop. I set my PS3 up, that it immediately connects to the net, even when not using the shop, as you need it anyway when playing online.

Did you already make an account actually? Not that that's the problem.
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Havent made an account yet, I have to update my version first
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So that is the issue
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Cool cool, will do today!
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