PSP Video 9 is fine.. providing you want inferior MP4 compression as it has poor support for AVC - video will loose audio sync after a few minutes.
I think that Nero 7 Recode is still the best tool for PC > PSP DIRECT (straight to PSP with tumbnails and corrent file-naming). Until i find a better tool, which i would like to hear about, i'll stick with Recode.