So what resolution do you guys recommend for the Sony PSP, I just ordered one for myself and it will get to me in Wednesday, so what resolution should I use to put the movies in there?

Congratulations on your buy. It's a sweet piece of hardware, with tons of great games (WAY better than DS's) and exceptional video capabilities. With 4GB MS pros running at about $40-45 there's no excuse

Use native resolution as much as you can; 420x272. Try to keep the aspect ratio of 16:9 (or 1.77) too since this is native to the screen and looks best, although the PSP will resize if needed. At that resolution movies just look plain awesome.

For DVDs use DVDFab, hands down, especially if you want to watch episodes on the go. You can download stuff off google video directly to the memory stick. If you have other stuff on your hardrive, like your digital camera movies, use XVID4PSP or PSPVideo9 (I like the former better)

You can also play 720x480 (1.5 AR) and 352x480, and they do look awesome too. The movies I tried (quite a few actually) encode no prob using DVDFab (it's the PS3 I have a beef with and it's just a question of selecting the best AR. I'd suggest that wen you encode just use the original movie AR and let the PSP do the resizing on the fly.

For full screen resolutions, and AVC, you have to select the appropriate profile in DVDFab, according with the firmware level you have installed on the PSP. As of today, there's no reason not to have 3.3 installed; even with homebrew requirements you can still install 3.4 OE and have the best of all worlds.

okay so I can be ready for when the PSP gets to me, how do I update the firmware?

If you mean the official FW, you can do it from the console itself via wifi or downloading off internet first. Check here.

If you mean custom firmwares, you'll have to search for yourself around. I'm sure it's against the forum rules to give info on how to do that, but read the wikipedia entry for the playstation portable and then do a simple google search. That should do it.

okay next question, at what volume and what Audio Bitrate should I put in the PSP, cause I tried it today with music and video, the volume sounds completely low for some reason