I'd say to get a DS now, then if you like get psp 2 when it comes out. If you like bright, vibrant and fun games I think a DS is the choice. I played Socom Fireteam Bravo for the psp and I just can't appreciate the graphics. It was so bland and boring. The enemies were almost dots on the screen. I aso played some others like Madden. Those games just don't seem to be meant to be played on a handheld. As for getting a psp for multimedia purposes, I'd pass. Battery not that good, you have to buy expensive low capacity memory cardsand it's not that portable. I think the newer version of the psp might have a hard drive, will be more portable plus you will be able to acess files that are on your PS3 hard drive even though your not near it.

I have both and really love my DS Lite and love to hate my PSP. 

As most people have already said, it really comes down to what you want the system for.  But I think the DS Lite is a better portable game machine than the 'Jack of all Trades' PSP.  My PSP rarely leaves the house, but I don't hesitate tossing my Lite into a pocket since there no reason to worry about scratches, battery life, or load times.  And because more of my friends have a DS and there seems to be more multiplayer games for it, I find myself using the DS a whole lot more than the PSP.  But I have one friend who is all into podcasting and such who takes his PSP on the go all the time (in one of those heavy duty cases).  But he has a DS too. 

Spot the difference:

 Final Fantasy Tactics Advance 2 (DS).

Final Fantasy VII: Crisis Core (PSP) 

I have DS and will probably get a PSP soon. IMO, they are too different for comparison as each one provides a unique experience.

@ Pedro... no one disputed that the graphics on the PSP are nicer.  But the one thing I did spot that's wrong with your post is the general size of the pictures.  The DS screen is a lower resolution and smaller than that of a PSP screen.  It should look more like this:

Pedro... If ur gonna compare games for DS and PSP...

-U pick THE BEST LOOKING GAME ON PSP...

-Why not get a decent looking DS game?! Like Metroid prime hunters... Or FFIII... That'd be more fair...

-Ah and i see its your first post... So welcome to the forums... But i think these pictures don't show it all... Gameplay wise... And graphic wise DS can do SO MUCH MORE!

But then again... It's a plain fact that PSP is stronger... However DS is more fun (i think)...

PSP is good if you like: 1. Sports games 2. Sony made series (like God of War) 3. The classic style of controls 4. High Quality Graphics 5. A System that does more then just play games. 6. Ports of old PSOne games 7. More Online games 8. Hacking and running Pirated games easily The DS is good if you like: 1. Puzzle, RPGs and Adventure games 2. FPS play better on it (to bad there aren't alot of them =/ ) 3. New way to play games (Touch screen) 4. Nintendo made series (Zelda, Metroid, Pokemon and Mario) 5. Own a lot of old GBA games 6. Lots on new and different games 7. Is designed solely for games 8. Care about game play more then graphics.

 Yeah, that's a better picture. I was lazy before and just used the picture from the 1up review I was reading. ^-^

It still looks inferior to Crisis Core which is the sole reason why I'm going to buy a handheld.

psp is fantastic.

Well its really not fair to compare FFTA2 to CC:FFVII FFTA2 was designed to look cartoony and is sprite baed just like FFTA, While CC:FFVII was designed to look realistic like FFVII:AC & DC:FFVII and is using full 3D models. Now I'm not saying that the graphics are equal. I'm just saying that if your going to compare two games uses two that are aiming for the same style. Sadly for some reason developers on the DS have never really tried to push more realistic looking games they always aim for cartoony. If you want to use CC:FFVII as an example compare it to Metroid Prime Hunters. If you want to use FFTA2 as an example compare it to Tales of Phantasia