How good is the PSP at web surfing and watching videos?”
I personally would rather have a small laptop which would be able to many more things and allow you to surf with a better, full-featured browser, though the comments and reviews I’ve seen from people say that the PSP works just fine for web surfing. The biggest issue with it for that purpose is that pages aren’t all going to fit on the screen, so you’d have to get used to panning back and forth to read some pages. There’s an older but pretty thorough review of its surfing value here: http://psp.ign.com/articles/637/637308p1.html As for movies, again I’d rather have something a little larger, but I think the PSP handles this better than it does the web. There are lots of movies out there which will play (UMD format), but I hear that the format is going to end up going away. So I wouldn’t expect to have too many new ones turn up, but hey if you’re out on the go and sitting on a train or a bus or whatever, it shoul