Sony has finally launched the first firmware that supposedly supports the PSP native resolution of 480x272. There are also a few other improvements, such as thumbnail support in the /VIDEO folder.
As with earlier firmwares, the PSP still has problems recognizing H.264 fw 2.8+ made with DVDFab, unless put in the /MP_ROOT/10xANV01 folder. It did work once, but I don't remember which DVDFab version I was using at the time. It's a few months back.
Are there plans for DVDFab to support the new formats?
Are there others who experience the same difficulties getting the PSP to recognize AVC videos created by DVDFab and put in the VIDEO folder?