This isn't really something I will use for recording but I thought I'd show it off.
When you play PSX on PSP via component it actually fills the whole screen (as in it's not like PSP games which have absurd amount of underscan) and outputs in 480p.
I probably could have picked a better game for it but this is the only PSX title I currently have on my PSP (it's Arc the Lad 2), what I mean is this game's kinda blurry like most 2D titles on the PSX.
I could see this being a good way to record PSX games if you don't have a PS3 to upscale them or a capture card compatible with 240p (and even than I'm pretty sure this looks better than any kind of deinterlacing you can do with 240p on a computer) or you just want to play some game you cant find an affordable copy of (since PSP's so easy to mod).