PSP Homebrew Developer pspgorrister has released Kpsp Convert v0.3.0, an app that can convert videos to play on the PSP. Unlike other converters though, this one uses Linux. The app supports the popular formats: mpeg, mpg, avi, and even YouTube videos (straight off the YouTube link).

Here's the installation process from Unicorn:

Just open a terminal, and write:

o cd ..
o cd Kpsp-Convert0.2.0
o sh ./install.sh

Notes:

* Now, navigate to your favorite video. Click on it with the right button/Actions/Convert to PSP Format. Just select Output folder/Codec and wait for a while.
* The codecs of the above of Window codecs give more quality for the final video, but they are also slower.
* Note that you could need ffmpeg library (just use Google).

And here's the changelog (as translated by Google):

0.3.0: 2007-06-02

* Added plugin Youtube, it is possible to convert videos youtube from konqueror, as it is with local files. Works both of youtube as a link to a page where we are, just by pressing the right button.
* Added English-language and has set the application list to add other languages with only a few lines

0.2.0: 2007-05-12

* It is now possible to select s more of a file at a time.
* Improvements to extract tÃtulo video. For example "The.Halt.Red [SPANISH]. [Divx-XDiv.] [WWW.XXxXX.Net]. Avi" devolverÃa "The Red Halt"
* Improvement in the comfortable say, I have done a little more s "clean" and what I have tried to prepare for a port to other desktops as Gnome or Xfce when you have time.
* Add the same source file timestamp
* Readme for different distributions for those with the ffmpeg "capao"