This just in from sanguinus, the developer of PC2PSP. PC2PSP (formerly known as the Lua PC Remote Viewer) takes screenshots from your PC and sends them through Usbhostfs or Nethostfs (untested yet) to your PSP and updates them about twice a second.

Last we posted, sanguinus added a mouse control but that version appeared to have some bugs.Some users reported having a problem with a missing OCX control so that has been added to PC2PSP v0.82. Also, he did some fixes to make it run a bit faster.
The speed can be adjusted by changing the line:

screen.waitVblankStart(10 )

By decreasing 10 it goes faster but it will also reduce stability. If you want to go for stability opt for less screen update.

If you're still experiencing kinks, sanguinus added the the following troubleshooting tips:

* Make sure the exe is in the folder with the Lua script and the pictures.
* Make sure exe is running
* Set pictures to read only

To install PC2PSP v0.82, unzip the download file into the folder which your PSP sees when you go into net/usb hostfs. Start usb/net hostfs the run the exe in the luaplayer/applications/screenshot/ folder. This sends the pics and acts as a PSP visible mouse. Okay you probably know this by now but go ahead and read the readme file.