2.80 Blowout: No more stupid file name format [Update 1]
When you connect a 2.80 PSP, you can create a folder in the root directory called "VIDEO":
Simply dump the file into that folder, and voila! You're done:
So, essentially, any video that's been encoded for a video iPod can now work on a PSP. Pretty sweet, right? But don't throw away your MP_ROOT folder quite yet... It appears that PSP-formatted videos will not work in the new VIDEO folder. You must still put those in the usual MP_ROOT folders. Lame! But, I'm pretty sure that's a small glitch that'll be fixed in a future firmware revision.
[Update 1: Added clarification.]