have a look at your cd-burner software, sometimes they have converters that allow you to convert videos.
PSP Video Converter Try pspvideo9.com. Their free converter works but is extremely slow. I tried a few free ones and ended up purchasing PSP Movie Creator from PQDVD.com. It's brilliant - we've since got Sony's own PSP Manager software which is no-where near as good. I haven't found anything PSP Movie Creator hasn't been able to convert. It will convert complete DVD or individual mpg, avi, or divx files and does so in 50% of the play time of the video i.e. it will convert a 1 hour movie in 30 minutes. Even enables you to create an icon which displays on the PSP and then transfers the file to the PSP when you're done. We've been capturing digital TV programs off air using a Nebula card, and converting them to PSP format using PSP Movie Creator so my partner can watch them on the way to work in the bus.
Not sure if I am allowed to post websites or not but try isohunt.com They have a lot of torrents and you can just search for psp video converter or something like that. I got one that works there. It was a 10-in-1 thingy... I only installed one of them hehe.