Video gets less stupid in 2.80
In July 2006, Sony introduced firmware 2.80. This finally alleviated some of the headaches associated with placing video on the PSP. Before then, a cumbersome naming process was involved, where users had to name files in a certain way, and place them in very specific directories. No more! A simple folder called "VIDEO" was all that was needed to get video on the system. Unfortunately, resolution restrictions were still in place at the time.