"PlayStation Portable owners who use Neuros Technology's MPEG-4 Recorder 2 to record video for playback on their consoles are being warned not to apply Sony's latest PSP firmware, version 2.7. Neuros claims the update prevents the PSP playing video recorded on its device.
We don’t think Sony did this on purpose, but, for now, PSPs with the upgraded firmware won’t play files recorded with the Recorder 2,” Neuros told users this week. Previously recorded content will need to be converted before it will play on a Firmware 2.7 PSP."