Things You'll Need
Instructions
Download UMD Emulator from the link in the References section below.
Connect you PSP to your PC with the USB cable.
Turn on your PSP and put it into USB mode by selecting ̶0;USB Connection̶1; from the ̶0;Settings̶1; tab in the Xross Media Bar.
Copy all of the files from the UMD Emulator download onto your PSP̵7;s memory stick. You will find your PSP listed under ̶0;Devices with Removable Storage̶1; in the ̶0;My Computer̶1; window.
Copy the video ISO into the ̶0;ISO̶1; folder in the ̶0;PSP̶1; folder.
Exit USB mode on your PSP and disconnect the USB cable.
Go to the ̶0;Videos̶1; tab in the Xross Media Bar. You will be able to play an ISO̵7;s stored on your PSP̵7;s memory stick from here.