I found the final solution to applying screen protectors.
After much frustration, i believe i have developed a fool proof way of applying screen protectors with "ZERO" dust and "ZERO" air bubbles.
My method goes a little like this:
unpeel the protector(or take your current one off), try not to bend the corner with your nail, as this will make a bubble there.
Run it under cold water(the side which gets applied to the screen), and have some glad-wrap(cling film, cellophane, w/e you americans call it lol) flat on a table(as flat as you can get it), then while there is still water on the screen protector, apply it to the glad wrap like your psp screen. After that, grab a sharp knife and cut about an inch out from the protector(all around on the glad-wrap) so you now have a make shift water-screen protector.
Using your hand, just squeeze out as much of the water from between as you can, this will flush out alot of the dust.
-edit- (you peel off the gladwrap when you have squeezed out most of the water and are ready to apply)
Then you apply it to your psp like normal, with a credit card/squeegee. Little bits of water will come out, but just wipe it off with the screen cloth that came with your psp. You dont really need to squeege it all out at once, since when its applied you can simply squeeze the 'water bubbles' out which will carry all the dust.
Result = 0 dust, 0 air bubbles and a clean psp :dance:
Don't worry, the amount of water that comes out is very very little, just to give it a tiny shine :)
This requires a silicon based screen protector(most are). and can make the best of the worst screen protectors. Enjoy!