From
Gamespot and
IGN-PSP.
The PSP will be "almost as powerful as the PlayStation 2," but its "programming would be more comparable to the PlayStation One." Whatever that means.
I take that second part to mean either that the PSP will be as easy to program for as the PSone was, unlike the PS2 (making PSP games potentially look even better than PS2 games), or that it's available software will for the most part look like PSone games, not PS2 games (which would look nasty, but could help with the PSP's apparent financial problems).
The freshly-unveiled PSP Development Kit plays DVD-Rs, because Sony apparently isn't ever going to let anyone get their hands on a UMD burner, not even their own developers, in order to try and maintain some sort of copy-protection (which will probably work as well as the GameCube's disks did, and be "an effective deterrant" to widespread piracy).
As a result, the "Universal" Media Disk is probably only ever going to be a format for PSP games, FF Advent Children, and some Sony-produced movies. Music will need to be imported to the PSP through the Memory Stick, and presumably, only in Sony's own ATRAC form (MP3 support isn't looking very likely).
The PSP's price and battery life are still top-secret, but will supposedly be unveiled at the Tokyo Game Show later this month, along with some actual playable games. However, the PSP dev kit will come with it's own simulated "battery life remaining" indicator, if that tells you anything...
Oh yeah and, some sort of "A/V out" port, to connect a PSP to a TV, was apparently chopped from the system a long time ago.