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Here is what you have to do... Completely shut down your psp and then turn it on while holding the R button and the Recovery Menu will come up. Go to Configuration and you should see the UMD Region option. By clicking X select your Region. *This won't work for movies, only movies from your region code will play on the PSP
Depending on what country your system is made in it will have a certain region code. Most movies are also region coded and if those region codes do not match then you cannot play that movie. You cannot change the region code on any system unless it is opened up and modified
PSP is a region free device that it is capable of playing media purchased anywhere in the world. However, the decision to make games and movies region specific is made by the publisher of each title and as a result some Universal Media Discs may not work on a PSP purchased in a different country.
Please ensure that you check each piece of software and UMD films for compatibility with your PSP before purchase.
Oh yes, there is. You have to install a custom firmware on your psp, so you can use the "fake region" options to play movie regardless of regions.
It's not too difficult actually, but you need some basic knowledge about it. I am giving you the links to show you how to downgrade/ install custom firmware onto your psp. Maybe you can give a try. Feel free to ask me any questions about that.