Copy files or folder to /VIDEO on your PSP memory stick.
This requires PSP firmware 3.30 or higher for playback. I suggest using Dark Alex 4.01 M33 CFW.
This is meant to be played with the Full Screen video setting on your PSP.
This is a anamorphic widescreen video. If you play it on your computer you will see black bars on the top and bottom, this cannot be avoided. Play it full screen to not see them.
Want to watch it on the big screen?
Here are a few ways to do that:
1) Do you have a PSP slim? If so buy the TV out cables and direct connect to your tv and play them that way. You can buy regular composite cables, svideo cables, and component cables. I recommend you buy the component cables if you have an HD capable tv.
2) Do you have an XBOX 360 and a PSP? Hook your PSP to your XBOX 360 via the usb mini b cable. Go to the media blade on your 360, select videos, change source, select portable device, navigate to your video.
3) If for some reason you don't have a PSP and you do have an XBOX 360 then you can just put the video files on any usb device and just connect them to your XBOX in the same manner as above.
4) You can also stream the video to your XBOX 360 using Windows Media player 11 or uShare on Linux. To stream via Windows Media Player 11 to XBOX 360 follow this guide http://owlet.spaces.live.com/blog/cns!D48B90C1DDF5D401!297.entry It works fine.
5) Watch via XBMC on your XBOX or Linux HTPC. This video has a few playback issues when playing back using XBMC on XBOX due to cpu limitations and bad support for B frames.
6) There is most likely a way to stream this to a PS3 or play via usb device also, but I don't own one, so I can't advise on how to do that.