Re: PSP vs iPod Tuch
Well, you can pretty much take anything from your computer and put it onto your PSP, providing you have a correct USB link cable for it, but it's not like they're hard to come by.
If you're looking mainly for the music and videos part of it, then I suggest the iPod Touch, music on the PSP suffers quite badly because of the small speakers and unfortunate compression, it's nice for portable gaming, but not so great for a music/video system, Sony sort of failed making the PSP a multi-media sort of thing, no one wants to buy a movie again so they can watch it in Teeny-Weeny-Eye-Strain-O-Vision.
Really, if your main priority for buying them is because of the video/music abilities, then I do strongly suggest the iPod Touch.