I did. Before and after. The Vita store doesn't give you the option to download all PSP and mini games that were previously purchased, just the ones that are currently compatible with the Vita. Out of maybe 200 previous purchases I was able to download maybe 15. None will run. All give the same error code and at one point I ended up with the flashing blue light. I didn't have to wait on the battery to drain though. If you hold the blue light and the power button for about 20 seconds, the Vita will reboot.
I copied all of my PSP and Mini games from my PS3 to my Vita via USB cable and the ones I've tried work fine.
Just to test I just hopped on the PSN store from my Vita and downloaded the Mini Blast Off and it gets the C1-2858-3 error on load, so it looks like something is messed up with the downloads from the PSN store directly on the Vita. If you have a PS3 download them there first and copy them over and it seems like you're ok.
I had to do the system update like everyone else. Signed in. Activated device. I have tried by downloading directly from the PS Vita store and by downloading to the PS3 and transferring. Neither way works. (Another piece of info - if you have the minis installed to your PS3 you have to download the file again, DO NOT INSTALL, and then transfer to the Vita) But, it still won't play so I guess it doesn't matter. I understand that the main purpose of this device is for Vita games, but a big selling point was the ability to play PSP games as well as Minis. Another side issue I'm having is the inability to locate additional Apps. I can't find Twitter, AR Play, Netflix, Skype, Flickr, Foursquare or Facebook. Am I just missing something or are they not available yet?
Yes. I understand that the release date is next week, but I expected full usage with the first edition bundle. I didn't pay extra to just stare at it for a week. I'm not really overly concerned about the extra apps. Waiting a week for them is no problem. My main concern is the error message. I think all of the games that I tried were games that I downloaded for free from PS+, which aren't really free since we pay for the Plus service.
My download list on the PS Vita store has been updated. Whereas previously I was able to download 15 titles which resulted in the error code, now I can not download anything. Every title on my list gives the "cannot download on ps vita" message.
I was able to download Persona 3 Portable and Ogre Tactics directly from the PSN store to the Vita and ran them without issue. I also downloaded The 3rd Birthday and Metal Slug XX onto my PS3 and transferred them over to the Vita, and those ran great, as well. I even copied over all of my saves from my PSP > PS3 > Vita and they all loaded correctly.
If you're still getting an error code, I would suggest contacting support. The PSP games should be working fine.
EDIT: For what it's worth, I did format my memory card during my initial install. I'm not sure if that's related to anything, but I wanted to mention it just in case.