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I love my PSP. I hardly play games on it, though. The only games I've got are two compilations of arcade classics. So I've got old games like Mortal Kombat 1/2/3, the original Street Fighter, Final Fight, Paperboy, Gauntlet and a lot more. Those are the only games I really have the time to play, anyways.
I use it mostly for watching videos and surfing (checking email, stats, news, etc). I've got a one gig card, but that's more than sufficient. I've got a hard drive full of converted video, so I just load new videos when I'm done with the old.
Like RobbieRye suggested, use PSP Video 9 to convert video. It's a great program and completely free. Depending on the bit rate you convert at, a 90 minute movie will take up about 300-400 MB.
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