It's a camera! A CAMERA! A simple camera plugged into your TV! O_O
I just bout this thing today, and their little 'toy' is just a plastic device, which holds a tilted mirror, and a small camera. You plug the device (camera) into your TV, and attach the device to your PSP. The mirror in the plastic thing reflects the light/screen from the PSP, back into the camera, and the camera recieves whatever image the mirror is reflecting. So, whatever the camera/mirror sees, it is displayed on your TV screen. You can even detach the device from your PSP, and use it as a TV camera, but without the recording. Think of it like a tricky PS2 EyeToy attachment, but for the PSP. ;)
IMO, I think this was a kind of a lame idea for a "handheld to TV" converter, but at least it works. Well...... Maybe not that lame...... Maybe more unexpected than lame.
Really, I was expecting some REAL video conversion, like Nintendo's GameBoy Player for the GameCube, or something like that. Not a simple camera + mirror interface. ;)