Continuing my trend of resurrecting dead threads here's a story that claims you'll be able to download music onto your PSP which points to some sort of writeable UMD storage. Unless they stick with memory stick I guess. This story is from C&VG:

EXCLUSIVE: SONY CONNECT TO POWER PSP DOWNLOADS

The Japanese electronics giant's recently announced iTunes-rivalling service is set to offer full support for the forthcoming handheld console, according to sources

14:44 Sony's PlayStation masterplan took further shape today with the revelation that the company's newly launched Connect service will play a key role in PlayStation Portable's wireless functionality, offering both music and, significantly, games for download.
A highly-placed UK industry source, operating close to Sony, revealed to us: "PSP is intended to be able to link up with Sony Connect to offer digital music for download, but the bigger deal is the plan to put PSP games up there for download eventually, too."

Sony Connect, touted as a direct rival to Apple's massively successful iTunes service, was officially launched yesterday. The currently US-only service initially offers over 500,000 digital music files for download from major and independent labels, from $0.99 per track; the European version is scheduled to roll out in June. The service enables music files to be downloaded onto Sony's own range of portable audio devices, mirroring the service Apple offers between iTunes and iPod.

Speculation has been rife as to the importance of wireless functionality for Sony's overall PSP plan, but with the launch of Connect this week, the pieces seem to be falling into place.

Viewed in a wider context, these revelations, if proved correct, add further fuel to the fire driving Sony's alleged drive to ultimately cut-out retail and handle distribution of software itself. Certainly, the notion of PSP game content available for download via Connect fits in perfectly with details revealed by SCEE President David Reeves, in last month's highly embarrassing leaked interview - accidentally posted on PlayStation.com - who outlined plans for the broadband distribution of software with PlayStation 3 (see here for the full report).

In related news, our source also revealed that Sony is currently leaning towards a price point of $249-299 in the US, which is roughly £140-170, but if these figures are accurate, don't expect it to launch in Europe for less than £199.

A spokesperson for SCEE refused to comment on the speculation when questioned earlier today. Sony will reveal more on its plans at its pre-E3 conference next Tuesday in Los Angeles, where PSP will be fully unveiled for the first time. We'll be on hand to bring you a full report direct from the event.

From what my sony rep tod me, it will have 30mb of onboard memory.

wow, that's some great stuff at sony

Now that sounds cool. I would much rather buy that then an iPod. I wonder if you can also use it to download your own music. Speaking of such this just opens the door and lays out the welcome mat for the pirates doesn't it.

You will be able to play music, movies, and pictures off of the Memory Sticks.

Hope they don't encounter the legal struggles that Samsung did with their recent release of a mobil phone that plays mp3s in korea. Being that Sony also runs several music labels, I'm sure that'll help.

At the same time, this causes a lot of in-house struggles which is why Sony's coming so late to the download-legal-music party.

If it is a problem, I'm sure a quick firmware flash would remove the capability to play MP3s or other media that a country deamed inappropriate.

Of course, a quick firmware flash would enable those features again if the customer so wished.