I have just bought a PSP cradle with integrated video out.
I tried it on my HD-TV, and it works great.
I can watch videos, see XMB and with a component cable watch PSP games (with black borders ...)
BUUUUUUUUUUT if I start a POPS game, I get a picture which vibrates, and it seems that each scanline can be seen twice.
Again ... PSP games work perfectly.
I'm using 3.71 m33-4
do you see the same behaviour??