Produce Video Content for the PSP: Kinoma Producer

Sure, you can use iPSP or ffmpegX to convert your videos to MPEG-4 for playing on your PSP, but Kinoma Producer seems to be geared to a slightly more professional conversion of your video content to the proper format for the PSP, as well as other mobile devices. Features include built-in presets, the creation of customized layouts of movies and backgrounds, the ability to use a variety of different source files (including unprotected MPEG-1, MPEG-2, MPEG-4, MS-DVR, QuickTime, WMV, WMA, AVI, DV, DivX, MP3, AIFF, AU), support to export video clips to a variety of media (SD, Memory Stick Duo, Compact Flash and other memory cards), the ability to create movies with hidden or exposed playback controls, the ability to rotate video to fit widescreen playback as large as 480x320 pixels, batch-processing of files, and the ability to save your favorite encoding settings.

Normally selling for $29.99USD, you can grab a copy for $24.99USD for a limited time. There is no free-running demo, but you can download the software and request a "feature limited free trial key".