Instructions
Mount the ISO disc image using a optical media emulation application, such as Daemon Tools and MagicISO. Once installed, launch the application and open the ISO file. Windows will view the ISO image as a physical DVD in a physical drive.
Extract the video from the mounted ISO disc image and convert the video to an MP4 video file. Handbrake, ImTOO and Xilisoft are all capable of this. Launch the application and select the mounted ISO image as your "Source." Select "MP4" or "MPEG-4" as the video output format. Some applications may have PSP presets. Save the file to your desktop and click "Start/Convert" to begin the conversion process. It may take a while. It is best to leave your computer be as it extracts and converts the video, to avoid any errors.
Connect the PSP's Memory Stick flash memory card to your computer via memory card reader. Open "Computer" from the Windows start menu.
Open the Memory Stick. Select "File," then "New Folder." Name the new folder "MP_ROOT," open this folder and create another new folder named "101MNV01."
Drag the MP4 video file from your desktop into this second folder. After the file copies, disconnect the Memory Stick and reinsert it in the PSP. You can watch the video by selecting it from the "Video" menu tab.