Well i want a device to watch movies and browse the internet mainly but the iphone is US$500, am i right?, well how much better is the iphone compared to the psp? i have never gamed on handhelds and have very little interest. my question is, is i want movies, music and internet what should i buy??? are those US$300 extra worth it? 

Update: Ok i bought the PSP, because you can not use the ipod touch or the iphone like a drive on my pc i can only put things in it with the itunes and i want to be able to read pdf files in it. thanks to everyone for the advise

For movies and music the PSP is great.
Internet, however, is quite sluggish. If you're willing to spend $300 on internet... then you know which to buy.

since you seem to have no interest in games, the iPhone would be your best bet. However, you may want to look into similar phones that have large screens and can play music, movies, and go on the internet. There are lots of knockoffs, however I don't know how they stand up to the iPhone.

ipod touch?

anyone here has both??

is the os slugginsh or is the connection?

The iPhone and the PSP aren't even a LITTLE comparable..they aren't the same types of mediums. Either you want a phone or you want a handheld gaming device...what do you want? This thread seems like a failure...

If you need a phone, get the iPhone. If you just want internet and movies, get the PSP. While you don't use handheld gaming devices a lot or have a ton of interest in them, I'd imagine you're a gamer because you're here. You may find a game you like here or there.

For the price, if you don't need a phone, this is a no brainer. I still think this thread fails..that's like me asking, "Should I get a DVD player or a toaster?" Well..do I want to watch movies or make toast? Maybe not quite to that extent..but these 2 devices aren't even in the same catagory.

psp browser is abit slower than safari apearently.

Iphone/ipod touch is garbage for gaming though.(i have an i pod touch)

95% of the game are laughable.

If you don't want to play, I'd go for a Nokia N810 or an iPod Touch

go with the psp good movies good games plays music has online and the key reason its cheaper