Pretty annoying to hear that the new versions don't work with 3.5+, although I'm not super concerned because I'm still using 3.4. I'll definitely want to upgrade when they crack the PS3 remote power on/off firmware, though.
Is the latest PSP Video 9 still stuffed with FREE IPOD SHUFFLE talking banners?
Edit: Oh yeah, almost forgot: I definitely recommend PSP Video 9, and I have an older, ad-free version if you want. My only issue is that I can't get the audio in WMVs to sync right.