I'll still take the PSP over the iPod. Sure, the capacity isn't as great (yet. I think the largest memory stick is 1 gig), but given that It can be used to get online, view pics, watch movies, AND play video games makes it a better all around gadget in my opinion. Not to mention it can be cracked. Iv'e seen people put entires movie's, or multiple games on one memory stick, and play it without using the disk. pretty amazing stuff. I watched T2 while coming back to Cali from the East Coast on mine. Sure beats watching those g-rated flicks they show on the flight. I'll take the ability to watch movies over 5,000 songs any day. I don't even think i could come up with 5,000 songs I'd be willing to listen too.