Thanks for your suggestions.
1) Installed Active cam > took a while to get it to recognise my webcam but it did finally after making the logitech software recognise the camera again then re-open active cam.
2) Using the http settings I selected a port and then opened that port on my router.
3) Active cam creates a webpage on myip address and : port number
4) In my psp I went to myip : port number.
By clicking refresh I can see updated screen shots there is also an option to see screenshots constantly updated but that gets tiresome as really I want a live feed not a refresh with no sound.
In windows media player it plays the webcam at hxxp://myip

ort/STREAM?NAME=1
I've been playing about with the vlc media player and the plugin from jocky and I think it's almost there but it just wont work which is annoying.
In the psp web browser I can get the stream however it wants to save it as a file rather than actually open it.
I'm a bit out of ideas at this point, but I'm even thinking about saving the feed (about 10 secs worth) as a separate file using the scheduler in active camera, then getting my psp to play all the files concurrently somehow whilst I have a vbscript in windows which deletes any file say older than 1 minute and renames any current files as video1, video2, ...up to video6, then re-looping the saved names as these will be part of a playlist on the psp using pimpstreamer or something along those lines.
Folks any ideas?