Things You'll Need
Instructions
Download and install "PSP ISO Compressor" using the developer's download link.
Open PSP ISO Compressor and click the "ISO->CSO" option. Click the "Input File(s)" button to open a file browsing window.
Select the ISO file that you have on the computer and click "OK."
Click the "Output File(s)" button and select a folder on the computer to save the CSO file once it has been compressed.
Click the "Convert" option at the bottom of the PSP ISO Compressor window to compress the ISO file into a much smaller CSO file.