Instructions
Media Converter
Open any browser and visit Media Converter (see the link in the Resource section below). Choose the "upload a file" button and select the AVI file you want to convert into an MP4. Click the green button to advance to the next step.
Choose "mp4" as your output format in the drop-down menu. Again, click the green button.
Choose "Start." Once the conversion finishes, click the download button to access your new MP4 file.
Zamzar
Open any browser and load Zamzar (see the link in the Resource section below). Click the "Browse" or "Choose File" button and pick the AVI you want to convert.
Select "mp4" as your output format under "Step 2." Enter your email address so Zamzar can send you a download link for your converted file.
Click "Convert." Zamzar will now upload and convert your file into an MP4. Check you email inbox for the download link.
Media-convert
Load Media-convert in your favorite Web browser (see the link in the Resource section below). Click the "Browse" or "Choose File" button and pick the AVI you want to play back on your PSP.
Select "Audio Video Interleave (.avi)" as your input format and "MPEG-4 Video (.mp4)" as your output format.
Click "OK" to begin the conversion. After the site finishes converting your file, a "Download" button will appear. Click it to receive your new file.
Playing the MP4
Connect your PSP with the Memory Stick to your computer using the USB cable that came with the device.
Copy the converted MP4 onto the PSP.
Disconnect your PSP and power it on. Navigate to the "Video" section, select "Memory Stick" and choose the MP4 you want to watch. Hit the "X" button to begin watching the movie.