I came across a link
It seem like a Japanese coder by the name of SofiyaCat. made a homebrew, that allows you to play Youtube videos without having to convert or host the files using your computer.
I don't understand any Japanese, so I cant read the instructions or find how to download it. I made this threat to see if anyone can be nice enough to explain to us how to work this Homebrew.
on the looks of it its in Alpha state, but if anyone can help, I, and many other psp users out there will be very grateful.
updates for the current versions of PSPtube will be here...i wont post anything right now because I'm really tired, but if you found anything important that should be posted about the new PSPtube 20070812 PM and I will post them..I haven't got a chance to try it yet.