Right after finishing the write up on my insane new Location Free media server, I saw that Sony had released a new version of the core software for the PSP. Russ Beattie did a good review here.
In a nutshell the new upgrade has a couple of features. 1. It supports WMA. Cool for those who use that. I have MP3 files of everything I listen to. 2. It supports Podcasts via a thing they call RSS, which to me makes sense, but to many they think it is confusing and a missed opportunity. That's probably true but it seems that the frequency of releases for the PSP isn't giving them much time to let the marketing folks come up with fancy new names for things everyone else calls something standard.
One more quirk, or feature that is important to note is that when you subscribe to a podcast you don't get to download the MP3 file. Instead the PSP streams it to your player. Although this really isn't in the spirit of podcasting for some, to me it's perfectly fine as it avoids me putting a bunch of stuff on my hard drive that I have to delete later or creating a CD to fill up the landfills.
The last kind of cool thing I will mention is that every artist on AcmeNoise has a podcast link on their artist page. This functionality is really cool with the PSP as you can go around and sign up for music from your favorite bands on the site and then stream them whenever you like.