Programs like PMP VLC are not officially supported by Sony on the PSP. To install them on your PSP, there is a very involved process of installing a custom firmware on your device, and this is not recommended, as Sony will not support this software and it is considered to break your end of the user agreement that you made when you first started using your PSP.
This aside, it is certainly possible, and there are a lot of resources out there on the internet to help you figure out how to do this. Keep in mind, though, that the process of putting custom firmware is not only frowned upon by Sony, but also may ruin your PSP by "bricking" it, or causing it so it no longer functions at all.
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There is no way to install VLC Media Player on the PSP, it is only supported by Windows
SOURCE: How to download VLC supported movies to PSP?
All right, the following section will show you the best way to help you with the download and conversion.
Download:
1. Download, install and launch Video Download Studio from http://www.downloadvideos-convert.com/download-videos-music.
2. Click” add URL” button to paste the URL of the video you want to download. ( or you can play the video on dailymotion and click “auto capture”, Video Download Studio will automatically capture and download the video for you.)
3. Download details will showed on the working window.
Convert:
1. Click” convert” button on the top, you will switch to convert interface.
2. Click ”add” button to load your videos to Video Download Studio
3. Click” profile” drop-down list to select MP4 format.
4. Click” convert” button on the bottom, you will get MP4 format video in seconds.
As you can see, these simplest steps enable you to convert video. Join in and do it yourself, you will get a lot of fun.get it from http://www.downloadvideos-convert.com/download-videos-music
Open Synaptic (System -> Administration -> Synaptic Package Manager). In Settings -> Repositories, make sure you have an universe repository activated.
Search for vlc and install it. You should install vlc-plugin-pulse/ and mozilla-plugin-vlc as well.
If you are interested in streaming or transcoding, you should additionnally install libavcodec-extra-52 from amultiverse repository.
Command line way
You need to check that a universe mirror is listed in your /etc/apt/sources.list file.
% sudo apt-get update
% sudo apt-get install vlc vlc-plugin-pulse mozilla-plugin-vlc
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