VisualHub is an intriguing video transcoding application that happens to be Xgrid-enabled.

It supports the usual set of iPod, PSP, DV, DVD, AVI, DivX, MP4, WMV, MPEG and Flash formats.
Converting video to the new PSP 3.30 480x272 native resolution (16:9 ratio):
These are notes for version 1.23 that have been obsoleted with 1.25, but may yet be of use later.
- PSP / AVC / Go Nuts
- In the advanced panel: set res to 480 x 272
- In the ffmpeg options: "-bf 1 -level 21"