Step 1: Download YouTube to PSP software. Install and launch it.
Step 2: Download YouTube Videos and save YouTube flv to your personal computer:

Step 3: Convert YouTube flv videos to PSP compatible video:
Click
to input YouTube video file to be convertered (batch convertsion supported, you can add as many YouTube files as you want).
Profiles option, you can choose "PSP - PSP MPEG-4 Movie (.mp4)" formats you want to convert YouTube to PSP:

Then click the folder button, select the destination folder where you want the converted PSP video files to be stored.

Click
button to start converting YouTube to PSP.
Ok! we have finished the whole process to convert YouTube to PSP, transfer YouTube to your PSP now.