DAB-Hacker over at our forums has released one of the best Paint apps for PSP 2.7 owners. Well, it's not his work exactly, he just decompiled a Flash Paint app, modified a few things and made it suitable for the PSP's small screen.

It has a bunch of controls and a big usable screen to scribble around. You can choose from 3 background colors. Plus you can specify the foreground color by moving the RGB sliders. Very clever and nice! There's also a few other tools and effects like Fade. Make sure to try them out.