On the subject of video on PSPs, you'll definitely want to buy a higher capacity memory stick (I believe it comes with a 32mb one.. lame)
The cheapest 512mb model I could find was here:
http://www.chiefvalue.com/app/productde ... pr1c3watch
$57.49 with free shipping. It's not Sony's brand memory stick, but it should work just the same (when I went to Best Buy yesterday, they had a table set up just for PSP stuff, and they were selling both the Sony and SanDisk memory sticks). This is a pretty good deal considering the same card retails for around $90 in-store.