According to PSP-Spot, a Korean user from a Chinese console forum CNGBA, named gaeko99, has released a PSP Media Player, a media player for 1.50 firmware. The current early version, v0.05, has the capability to play standard AVI (DivX, XVid) and Quicktime (Mov) on the PSP in fullscreen. Eventhough it doesn’t seem to scale the image yet, but image quality is perfect. It can also music files with the following format: MP3, OGG, and WMA. The author promises that the next version will support other file format, including Flash animation (SWF).

To use the PSP Media Player, you have to put your movie files in /PSP/VIDEO directory and the music files in /PSP/MUSIC. Then from the main menu: use [SELECT] to open file (File Open), [START] to end program (Finish Program), and [CIRCLE] to select movie/music to play (Action). After selecting “File Open” the first option selects files in the VIDEO folder, the second option selects files in the MUSIC folder.

You can also control the movie/music while playing with the following buttons:
[DPAD-LEFT] : Rewind
[DPAD-RIGHT] : Fast forward
[TRIANGLE] : Finish File Selector/Change CPU Clock(Playing Video)
[SQUARE] : Stop
[CROSS] : Pause
[START] : Change videomode (causes crash with some codecs)

You can either download it from here or from here.

[ Via PSP-Hacks ]