The PSP's gorgeous widescreen is unsurprisingly ideal for watching video content as is ably demonstrated by the huge number of UMD movies now becoming available. But did you know that you can download video onto your PC and transfer it to your PSP? Your PSP will play videos in the MPEG-4 format, often abbreviated to MP4, but it will need to be encoded in a bitrate of 768Kbps or lower. You can discover the bitrate of a particular video file by right-clicking on it in Windows and selecting Properties.
If you've connected your PSP to your PC before, perhaps to transfer a movie or some digital photos, skip to step 4.

With your PSP turned off, insert the Memory Stick Duo into the Memory Stick slot on the left of the PSP console. Turn your PSP back on and go to the home screen and access the Settings. Scroll down to System Settings and press X.
Within the System Settings section, scroll down to Format Memory Stick and press X. Confirm that you want to format the Memory Stick Duo and wait for a few seconds while it takes place.
Once formatted, return to the Settings section at the home screen and scroll to USB Connection. Connect one end of the USB cable to your PC and the other to your PSP and then press X.
This will enable your PSP's USB connection and, after your PC has loaded any drivers it needs (as long as you're using Windows ME, 2000 or XP it'll do this automatically), open My Computer on your PC's desktop.
Double-click on the Removable Drive icon and then on the MP_ROOT folder. You'll now see a selection of folders, one of which is called 100MNV01. Open this folder by double-clicking on it with your mouse.
You can now save or drag and drop video clips into this folder, either individually or in their own sub-folder. Once transferred, press O on your PSP and go to the Video icon on your PSP's home screen and press X.