I wanted to just give my opinion about PSP and Ipod Video
I have both and to tell you the truth, Ipods are over rated, Yes they are!
The PSP is great for playing games and watching videos, and the battery is easy to replace!!
The Video Ipods are really only for playing music, the video screen is too small to view for long time, and the battery is very difficult to replace, you have to take the whole thing apart to replace the battery.
Also the video Ipod comes with next to nothing on instructions, there is a downloadable manual but this is not convenient. Also I generally find Itunes program difficult, as I still have not figured out how to have certain files of music eg relaxation, energetic, language learning and etc, so at the moment the silly ipod just plays anything at random.
one thing i have discovered is how to play ipod videos to tv, although the picture quality is reduced its still a great feature and what's more you don't need to buy a special caple, the colour codes are mixed up and so i found the right colour code cables on the internet site
overall, ipods suck, psp are better and music playing well i would go for a mini disc player or an mp3 player that has a radio and is smaller than an ipod