The idea is pretty interesting, and though it's being marketed for PSPs, it can be used with some other devices, including Creative's CompactFlash slot-enabled Zen Vision. However, most of the top-rated portable video players, such as the Archos AV500 and the Cowon A2, can already record video straight to their hard drives, and most others don't have a media-card slot.
Neuros has a new set-top device that records video content onto Memory Stick or CompactFlash media. The $150 Neuros MPEG-4 Recorder 2 is a VCR-like device that can record from a variety of sources, including satellite and cable boxes, PVRs, DVD players, camcorders, and more. Video is recorded in the universal MPEG-4 format at up to 640x480 resolution and is stored on media cards. For example, you can record Desperate Housewives, then pop your Memory Stick into a PSP and watch it without ever involving a computer.