Let’s face it, almost all of the PSP video encoding tools are for Windows. After doing some extensive research, I have finally found an encoding solution that works. The PSP can play MP4 and H.264/AVC, but it is very finicky when it comes to supported files.
So without further ado, I present my script that I use to encode videos. Eventually I’ll get around to making a GUI for it, but right now you can have the script and play with it. Most of the constants are defined in the beginning of the script so they can be easily changed, such as audio and video bitrate. The usage is: encodepsp inputfile outputfile.
The script depends upon a recent build of mplayer/mencoder with x264-svn and aac support.