I've been helping with the v1.1 beta test of Lathe (http://www.omniquiti.com/store.php) and we need more testers.
Lathe is the pay version of PocketDIVX (PocketDIVX does not support PSP output, Lathe does). It allows you to convert video files to various formats playable by portable devices (including the PSP). We need more testers to try out the new AVC conversion (you need 2.0 firmware for this, though you can also just convert to normal MP4) and compatiblity with various file formats. If you are intrested in participating send an e-mail to PSPbeta@omniquiti.com. This an open beta and the there is no fee to participate in the beta testing.
We are looking for feedback on compatiblity, features and ease of use.
The main feature of Lathe I like is that you can make subtitled videos from DVD rips without encoding the video twice. Great for anime and foreign films!
Using Lathe is fairly straight forward (they have strived to make it easy for the end user). After opening Lathe go to the "Presets" tab and select the PSP. Return to the "Basic" tab and open the file you want to convert. If you are converting a DVD rip you will be asked to select a language (if you also want to add subtitles click the "S" icon). Enter a name for the video below the file selection box. You can adjust the video and audio quality using the sliders and tweak more settings under the "Advanced" tab. If you have your PSP connected to your PC (set the PSP to USB mode) after the file is finsihed encoding you can save it directly to the PSP and pick the thubmnail you want.