'Any Video Converter' has a PSP output with adjustable settings. Scroll down for the free version. http://www.any-video-converter.com/download/
If you want convert MPEG1,MPEG2,divx videos to MP4 formats,I think you can use a video converter .It can convert videos to iPod MP4,PSP MP4.Convert between all popular video and audio formats. I usually use this method.You can find it through google. You also can read link removed popular video converter reviews[/url] to choose. It can help you.