I use Xilisoft DVD Ripper to extract the dvd movies. Then WinAvi Video Converter to transfer my movies on to my PSP. ...Both "freeware"

with some help at theserials dot com.
I like the two and find it really easy to use, probably worth using if anyone's having problems getting movies to PSP. They seem to be pretty small in size and you can use WinAvi if you have an Ipod. It also converts 3GP which I never heard of before. You can also convert the files and have WinAvi automatically install the movies to your psp (creating the root file) and then shut down the computer for you upon completion.
I was trying to use PSP Video 9 but it keeps saying no detection etc etc.
I haven't seen anything better and think it's worth a look.
Peace.