For what it is worth, I interpret that statement ("Times must be set on an unmodified console") to refer to the more typical meaning of "mod'd console", i.e., a console that has had its firmware or electronic guts altered in a manner to allow it to be hacked or otherwise manipulated in a manner unintended by the manufacturer.

I think that statement is much more an indictment against the use of custom firmware-- which we know alters the performance of the PSP hardware, sometimes in unpredictable ways-- than the use of a piece of tape to hold down the "up" button. This is coming from somebody that doesn't care for the tape down method and probably won't use it for time trials

That's just my interpretation though-- maybe Foxxy can stop by and comment on this issue