if you're one of the luckier owners of Sony PSPs with firmware versions 1.0 or 1.5, _DON'T_ perform any network updates or firmware updates just yet! if you want to, you're eligible to be one of a growing number of PSP owners who have taken the road to alternative gaming on the PSP: emulators!
if you guys haven't done so yet, check out my link to PSP Emulation - you'll be able to have access to a great wealth of emulators on the PSP - NES, GB, Sega, SNES... the list is immense! there are also third-party applications that have been developed for other fun purposes. for example, you can turn your PSP into a PS2 and Sony Wega remote control! you can also control your PC from your PSP!
just keep checking out the links i mentioned already (especially PSPUpdates. and Google anything else you might read up on elsewhere.
and for video conversions, check out PSP Video 9 - but i'll make a better article on this topic next time...
for now, happy homebrew! and feel free to message me if you have any questions about using any PSP application.