Sister, brother or father site Engadget (I never really looked at the family tree) has reported about a hardware solution to help PSP owners convert videos for their system of choice. The ADS Tech Instant Video To-Go is a USB stick format device that has a "hardware accelerator" enabling gamers to convert videos "up to five times faster than real time." The device supports the following file types: MP4, AVI, WMV, MOV, RM, JPG, TIFF and MTP. ADS Tech also claims the device can reduce a 100 minute MPEG2/VOB into a 320x240 H.264 file in about twenty minutes.
The Instant Video To-Go retails for $79.95 and may be a great solution for PSP video buffs looking for a quicker solution for format conversion.