Berklee has created a program called Simple PSP Copy to assist in renaming AVC files to the PSP format.

What is Simple PSP Copy?

I had a very simple problem that needed a very simple solution. I had a number of AVC-encoded video files that I wanted to copy to my PSP. But I simply kept forgetting to rename the video files after copying them, so there was no way I could play them back.

Simple PSP Copy helps with the renaming. It can copy multiple AVC video files to your PSP and automatically rename them for you.

Just unzip the files and double click SimplePSPCopy.exe.

If it doesn’t work, you could try to install these Visual Basic Runtime files from Microsoft first. That should fix it.

You can download Simple PSP Copy here

Source: PSP Updates