Video iPod vs. PSP

[gutte169]

Alright, I'm sorry if this has been already discussed, but I'm weight my options with a purchase, and I've heard varying reviews.

Basically, I'm looking for overall functionality. I'm not necessarily a 'gamer', but I might actually 'play' on the PSP here and there. I also wouldn't plan on actually 'buying' many movies on those little DVDs, so I'm not sure how much I would use that feature. What I'm most interested in is how flexible are these devices in general? I mean, I have a decent sized collection of TV shows, etc. aquired by various means and in various formats. I've seen people watching shows on the video iPod, but how convienent is that in general? Would I have to convert my collection all to .mp4? Or does the video iPod play other formats as well? And with the PSP, I assume this is feasible, since I assume the PSP is the more powerful machine. Is it possible to simple install some WMP-like software that will play multiple file extensions? And, if so, is it possible to A) Burn PSP DVDs and B) play 'files' from the DVD drive, not just DVDs, or will I have to have everything on the PSP hard-drive (only 1GB, i've heard).

As far as music is concerned, I'm sure the iPod is far and a way better. But, is it possible again to play music from the DVD drive or hard-drive. Overall how useful is the PSP for music?

So, to wrap up, this is how I understand the two items.
Video Ipod - Huge storage, video capability (only .mp4 from what I've seen), simple music interface, and slightly cheaper
PSP - Gaming and DVD playing (only special 'PSP DVDs'), wireless card (i think?), seemingly endless possibilities outside of that (video/ music playing), but maybe more complicated that I should get involved with.

Anyways, those are my brief questions and what I know currently, any light shed on the items is very appreciated.