I get that the PSP can connect to the PS3 but it just seems silly what you're saying.  Why would I want to play a game made for a screen larger than 4" on my PSP in SD?  Also, why would I want to play my PS3 games or BD movies when I'm probably in the same room as the PS3 my PS3 is streaming from?

 you do realize that it will be just as illegal to copy a DVD as it is to copy a BD correct?

@twesterm

Dude, connect it to a tv lets say at ur friends house, he has wifi, you have wifi, you can turn on ur ps3 and use it connect ur psp(2000) to the tv and there you have it, a portable ps3.

Again, whats the point of streaming media as a game from a PS3 if you can't play it in HD or even SD?

@FJ-warez

Connect the psp to an HD TV, and it will come out as in HD.

I have a PSP and a PS3, and I have never once used it to watch those crappy low-res movies they were trying to sell. If I am going to watch a BD movie, it is either on my 57" or 42" HDTVs. Watching a movie on that little screen would probably give me a headache, if not just annoy the shit out of me. Who cares about this. One more lame feature that almost no one is going to use!

Not trying to be a troll, but, what's the point? Why would I want to watch a HD movie on an SD tiny screen? Can't you already view a regular movie with the UMD on the PSP? That would be much better since it is a smaller file size and transferring it would be quicker. Am I missing some important aspect of this that makes more sense?

 That is exactly why I'm happy :) It's not illegal at all, Sony allows you to do this since it's not a unencrypted copy. The movie is still encrypted and linked to your PSP. You can only play it on that PSP, the one synced with your PS3. This is the same technique Sony uses to allow PS1 games bought on the PSN Store to be played on the PSP.

 This is great news for me. Always wanted to be able to play my DVs on my PSP (legally)... 

 If I'm understanding you correctly you're saying that I turn my PS3 on at my house, go to my buddies house who has a PS3 and a PSP, he turns on his PS3, connects his PSP to his PS3, I connect my PSP to my PS3 back at my house, and we then play PS3 games together.  Is that what you're saying?

If so, no offense but that's the dumbest fucking thing I've ever heard.

1.  Why would my friend play on his PSP when he can play on his PS3?
2. Where's the SIXAXIS support in the PSP?  It's not coming through a firmware update and I would love to see where they stick it on that thing.
3. Once again, why would I want to play a game meant for a screen larger than 4" on my PSP?
4. Do you really think my PS3 back at my house could encode whatever it's processing to some form the PSP could read fast enough so there wouldn't be any lag?
5. If by some power of the Cell the PS3 could encode the information that fast, do you really think it could get sent fast enough?
6. If by some miracle of the Cell the data could get sent fast enough, what about the data your friend is trying to send you?
7. How fast do you think the PSP can send the data back to the PS3 to process and to your buddy to send to his PSP to send back to his PS3 to process?

OMG, leo just just fell off his rocker...OMG. That is the dumbest thing I have ever heard, despite the fact no one would want to do that in the first place, other than as pure novelty.