Not sure why transferring a movie from a DVD you already own to the memory stick of your PSP would be considered illegal. It's my understanding that as long as you don't circumvent the DVD's encryption, it's fair use.

VOB files from a DVD can be easily converted to the proper video format for your PSP without cracking any encryption in the process.

Isn't any program that converts VOB to PSP actually doing the cracking for you, even if it's behind the scenes?

All DVDs are encrypted. Anytime you rip the video off you are violating the DMCA and it is technically illegal. That said it is also complete bullcrap and I rip many of my DVDs for my PSP. I don't mind rebuying them now and then on UMD if they are cheap enough, but I don't believe I should have to pay to watch a lower resolution copy of a movie I already own.

So technically it is illegal, but in no way is it morally wrong and if someone had the money to challenge it in court fair use should win out.

Hold the phone.

There IS a way to legally convert your DVD for playback on the PSP. Ripping the VOB from the DVD requires cracking the CSS encryption and that violates the DMCA.

But, under "Fair Use" you CAN connect a DVD player to your PC (equipped with a TV tuner or video-in capabilities), press play on the DVD player and record on your PC.

I have read some opinions that even this analog hole is still a violation of the DMCA. DVDs are macrovision protected and should not allow copying over analog. You are bypassing that protection so technically you are still violating the DMCA.

Nope. The DMCA is specific to digital encryption. Macrovision is an analog control signal, not digital encryption. There is no law or licensing obligation that requires hardware manufacturers (such as v tuners) to respect macrovision encoding. There are various hardware devices that are not macrovision-busters that do not use the control signal that macrovision uses to "confuse" VCRs but not TVs.

Sounds reasonable and is probably the reason the studios and record companies want the analog hole filled. That said I wouldn't bother and will rip my DVDs as I see fit. I know it is fair use and I'm not going to feel guilty about it.