Thanks to the help of Bronx, jaker, and especially ARza I have made my first Lua thingy lol.
Put the lua file in the psp/game/luaplayer/applications/Hello World/index.lua
i just created a hello world folder but maybe you dont need a folder whatever works. Then start up lua and select it and it will say GUITAR GOD MADE THIS!!!!!. Im not that good so i havent made like an escape thing or anything so to exit the hello world u must press home and exit also the screen doesnt go black it just shows the lua player menu and the text across so maybe at first glance u wont catch the text but its there and its blue!! lol thanks guys gonna go read more tutorials and try to make a actual game.
also it originally said hello world but since i created it i renamed .