VideoFirst things to say, the manual refers to the device as the PSP-2000 series, and references the earlier model as the PSP-1000 series. The first hardware detail everyone is probably interested in, and the only real difference PSP-1000 owners would be interested in, since who wants to really throw down another $200.00 (for a bundle, cheaper for the system itself.) for a new PSP when the older works just fine? This is of course the video OUTPUT function. A PSP-1000 series owner will only want this if for some reason they want to play the PSP videos on their TV at home, which is indeed a great feature that I think many will be tempted by, plus this will enable you to record videos of gameplay to a device if you use RCA/AV based connectors for the input, rather than being forced to hold the PSP still in front of a camcorder (which I think you only want to do when showing off hardware being used in the process like the xbox 360 controller hack).
The new PSP has been advertised as having high quality video output, you can purchase component cables for this, or if you lack HD on your TV or arent particularly interested in the best video possible, the standard AV cables, yellow white and red. I am unaware if any other specific cables can be purchased. I haven’t found anything in the PSP 2000 about it’s video output specs (Hmmm, trying to pull a fast one Sony?), but if they bothered to put out component cables I hope it can do 720p or better, since 480P (which is still sorta standard definition and is the highest a Wii console can output for reference) would be a low blow considering they boast that 1080p is "true" HD, and I could understand if they could only go as high as 720i on a handheld device, but 480 pwouldnt even be worth the extra cost of the component cables. Since I cant find any sources that specify what the HD or "high quality" output is, Ill have to wait for the cables to be stocked at my local store -_- and plug it into my HD tv which has a button that tells me the input quality, but at that not all games run the same HD signal for the PS3 so even there I might not see the highest setting it can do, hopefully one of you posting in the comments section will give us an answer?
Caching
The PSP of course has it’s other features, and if you dont mind waiting a few more seconds to play you still can keep your old PSP if you’ve resisted video output. It loads faster and consumes less power thanks to a caching system from which my technical knowledge is not vast enough to fully understand or explain. In effect a smaller battery is used (1200 mah, while my PSP-1000 has a 2200 mah, which is not the standard battery for the psp, but a sony brand battery with an upgraded power level, I think the standard battery for a 1000 series is 1800 mah).
The PSP-2000 series has slightly different firmware due to it’s hardware capabilities, and uses 3.60 while my psp-1000 runs on 3.52, and attempts to update the firmware on my 1000 via wifi says it has the most current available, so the two models will be using slightly different firmware as a result, instead of the operating system buttons for the video output and caching just not appearing on the older model. This means that the caching function can actually be turned off, and perhaps an automatic mode may be added later via firmware update, since the manual specifies that certain multiplayer functions of the PSP might not function properly when caching is turned on...In other words exiting the game and going back to the menu to disable caching, and loading up the game again for any multiplayer function that needs the same space on the memory (that would be used for caching) to synce the two PSPs in the lack of the automatic feature. Keep in mind I haven’t actually tested this so maybe it wont be a problem.
USB charging
...Not that great a feature but useful if you keep losing your charging cables or don’t have enough power ports to plug it in.According to the manual, you have to set it to USB connection mode before it will charge, leaving the psp incapacitated in the mean time. Charging effectively takes a much longer time though.