^ this, it's worked fine for me in the past

Very interesting question by the way.

PowerPSP and it's free

I use:

DvDfab for everything from my LG Dare to PSP.. one click and it's done, kickass software, not free

I've had good luck with Handbrake -- it's open source and converts plenty of file formats into PSP-compatible MP4s (it comes with a bunch of preset options, just click on the PSP tag and start converting). One hint though: every now and then, the resulting video won't play due to size requirements, i.e. you have to shrink the vertical resolution down to 208. (Rare, but happens.)

Thank you for all the suggestions everyone.

This is the winner for today. I encoded 3 movies using mediacoder psp and none of them had any audio lag.

PSP Video 9 gave me like a 2 second lag for some reason...but even without that, mediacoder is much much better when it comes to option and interface. Both are free source...

no problem and nice to hear it solved your problems :)

This DVD Converter Suite is a combination of DVD Ripper and video converter. It can Rip DVD and Convert video to almost any video formats for iPod/iPhone/PSP/Zune/Zen/PS3/Xbox/Archos/iRiver and other portable devices.

Key Features: (Download here: DVD Converter Suite)

1: Convert DVD movie to video/audio

Powerful DVD Converter to convert DVD movie to AVI, MP4, MPEG, WMV, 3GP, HD video, MP3, WMA etc by DVD Ripper Platinum.

2: Convert video files to any other format you want

Versatile video file converter to convert videos between MPG, MPEG, MPEG2, VOB, MP4, AVI, M4V, RM, RMVB, WMV, etc and HD video and extract audio from these video by Video Converter Platinum.

3: Merge, effect, trim, crop – multifunctional editing functions

Merge several files into one for your successive enjoyment, adjust the DVD movie brightness, contrast, saturation, and volume, get any time length segments from your DVD movie or video files, crop the DVD movie or video files play region and adjust the output aspect ratio with the help of 4Videosoft DVD Converter Suite.

4: Customize output parameters

Adjust the DVD movie and video Encoder, Resolution, Frame Rate, Bitrate, Sample Rate, Channels. In addition, you can input your own-set Resolution. All the well-customized settings can be saved as user-defined settings for your later use.

5: Deinterlacing

For interlaced DVD movie and video, check Deinterlacing for you to get the progressive video and avoid mosaic.

6: Take picture, select DVD audio track and subtitle

Capture your favorite pictures when you preview your DVD movie or video files and saved in the default folder automatically, select DVD audio track and subtitle based on your needs.

7: Support instant preview

You can preview both your source video/DVD video and the effect of converted video simultaneously in the same window.

8: Fastest conversion speed

Provide the fastest conversion speed (>300%), completely support dual core CPU.

More related tools:

Best DVD Ripper

mac video converter

iPod Transfer

Best HD Video Converter

TS Converter

I always use Pavtube DVD to PSP Converter.It never crashed, never failed, it's so easy to use.

Pavtube DVD to PSP Converter supports to edit and convert DVD movies and videos to PSP supported files formats like MP4, PSP H.264 movie and other more. Moreover, this DVD to PSP tool features with its powerful customization, optimized audio and video sync technology, multi-thread technology, which enables you to faster convert DVD to PSP supported files with better quality.

and  Pavtube Video to PSP Converter

It is a great tool for you enjoy more out of your PSP. It helps you to edit and convert various videos, audios and images including animated GIFs to PSP supported file formats like MP4, PSP H.264 movie and other more.

With it, people can enjoy their videos from DVs or camcorders manufactured by JVC, Panasonic, Canon, Sony, etc., DVDs (*.vob, *.mts, *.m2ts, etc.), YouTube (*.flv, *.f4v), etc. and everywhere else with PSP on the go.

At the same time, the program highlights with 1.5 or 2 times faster conversion speed, better output quality without video and audio sync problems and powerful editing options.

I hope it will help you.