I FIXED IT! Activate your system from Account Management in PSN section. Activate 'game' and then try again. It worked this way for me.
Edit: Also to mention, if you are caught in a situation where you cannot activate your PS3 (You get an error), delete your current user and make a new user and...
I have the exact problem. With or without a PS2 bin.enc mounted, I still get the 80029513 error, and I followed everything @atreyu187 said. I have exdata containing the universal rap on my USB root, plus I have an encrypted PS2 Classic game. I tried both ReactPSN and PSNPatch but they both don't...