Yeah I tried that before. But there is not much functions you can do. Have you tried the software XviD4PSP? The program name is not specifically made just for PSPs. There are a bunch of video encoding formats you can convert to a different formats and change it's bitrate, Filters and so forth. There are standard presets specifically made each Video Format. But you can still tweak to whichever you want. As long as you know what you're doing

Here's the direct download link to their website

SCREENSHOT :
http://img17.imageshack.us/img17/401...kia5800mod.jpg
http://img112.imageshack.us/img112/6446/adszos3.jpg
http://img72.imageshack.us/img72/4192/pic1os8.jpg