For those of you with a custom firmware on your PSP may be interested in the homebrew application PSPTube, which allows you to stream (and save) media from sites such as YouTube, Dailymedia, Stage6, Veoh, NicoNico, and Onsen.

Installation:

Make sure you have a custom firmware, such as 3.71 M33-4, installed, and put the PSPTube folder in /PSP/GAME3xx (replace xx with your firmware’s version). It runs from the 3.xx kernel. Run it, and choose a network connection to connect to.

To use the login function in Dailymedia, open the configuration file in the archive and plot your user information in their respective places. This will allow you to view media you have to log in to view on a computer.

Controls:
Out of video:
Triangle: Display a menu with different options, such as saving videos.
Circle: Go back to the search panel.
Cross: Play the currently selected video.
Left trigger: Go back one page.
Right trigger: Go forward one page.
Select: Go to next video site search results.

When playing a video:
Triangle: Show or hide the currently playing video’s time information.
Circle: Stop playing video and go back to video search results.
Square: Go back to search results while video still is playing. Will split the screen in half if pressed twice.
Left/right D-pad: Choose between 0.5x, 1x and 2x speed.
Start: Pause the video.
Select: Change screen size.

These are still beta builds, but they work extremely good.

This software will mean that you no longer need to convert YouTube videos to MP4 before being able to watch them on your PSP.

Via: DCEmu