You should use PSP System Software (Firmware) Version 2.00 or newer.
Then one of the following three items will be mandatory:
(a) 5-Pin USB Cable.
(b) WiFi 802.11b Compatible Router/Access Point or accessible WiFi 802.11b compatible Internet Access.
(c) Memory Stick Pro Duo Card Reader.
For those users who already have System Software 2.00 installed on their PSP, just pass over section 'II' and go on to section 'III' because you will have no problems with the installing of PSP Wallpaper.
II) Installing System Software Version 2.00 on your PSP:
1. All official instructions on how to update your PSP to version 2.00 in order to succeed in installing PSP Wallpaper can be found by following this link: http://www.us.playstation.com/psp.aspx?id=SoftwareUpdate
III) Transferring your PSP Wallpaper onto your PSP:
There are two ways of getting your PSP Wallpaper to your PSP. First you have to use a 5-Pin USB Cable or a Memory Stick Pro Duo Card Reader. Then connect your PSP or Memory Stick Pro Duo to your PC. (If you use a USB Cable, insert it into your PSP, switch your PSP, then go to Settings, and scroll down to USB Connection). After accomplishing this level go to My Computer -> Open the new Removable Disk that has become visible. Create a folder with the name "PSP", in that folder create a new folder named "PHOTO". Now take the PSP wallpapers you have decided to have on your PSP and transfer them into the "PHOTO" folder.
Second is using accessible WiFi Internet Access. Enter the Start Menu of your PSP.
Get the "Network" section and select the "Internet Browser" when doing so you should see a clean page. Make a click on the 'Triangle' button, and then click on the "File" button, and in the end click "Address Entry". Write in the url/address to your PSP Wallpaper image and press "Enter". In case you happen to have an accessible network setup and ready it should connect to it wirelessly automatically or it should let you choose which one you're like to use. In case you do not have it, you will need to create one in Network Settings. Immediately after this you will see that the picture should load up. Now click "File" and click "Save Image". Destination should be set to "/PSP/PHOTO/" and "File Name" can be anything you want. Once everything is set make a click on "Save". If you will see the message "Save Complete" you have completed your work.
IV) Locating your Wallpaper on your PSP:
Open the PSP Main Menu and go to "Photo". Then click on the Memory Stick. After doing so you will see you picture. After this choose and open the image you would like to apply. Click the 'Triangle' item and then choose "Set as Wallpaper" button and then click it. Click "Yes" when it will inquire you if you would like to set as wallpaper or overwrite existing PSP wallpaper. Finally, go back to your PSP Main Menu and you should see the new wallpaper as your background.
