There are rumours of a PSP Modchip being worked on in the scene but as you should know, until they surface for real it should be regarded as vapourware until the news comes from a valid and respected source (and by that i dont mean sites that want a /. for news/releases that arent theirs etc).
Heres whats been posted on other sites of the features:
"– Full control Input through the psp’s screen and controls
– Separated From The motherboard
– Custom Interface
– Built In 88mhz Processor
– Dual Memory Cores (allowing For expansion)
– Software completely open source
– Completely internal
– Allows play of import UMD films
– Complete override of software on the psp
1.Homebrew Mode Only Allows software to be run off memory stick
2.Normal Mode Allows of chip’s default features and signed code on the memory stick
– CPU Clocking allows speeds of up to 365mhz which may damage the CPU so we don’t recommend it
– And through an optional cable you can connect a USB hard drive to the chip requires you to use the chips own software you can not use it directly with the psp’s firmware
– Full Instructions
– Requires One standard watch battery which will be included in the package"
Some curious claims there and im sure those who are more tech savvy will rip those claims or validate them. Remember that Sony will if real will throw all their legal weight at the company that releases these rumoured modchips for PSP that have a price of $22.99 being floated around.
So until proper confirmation has been released take any news as a pinch of salt, ill be glad to hear what teams like Team Xecuter and others have to say on the matter.