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Check the power settings to see if that is the cause of it shutting down. Streaming music does not produce the keep alive activity that is required, so it thinks that it isn't being used and turns off.
try to reinstall the firmware of your psp using pandora battery and magic memory stick or try to go to recovery menu hold press r button and switch on you psp and go to advance and select format flash1
Mine did the same thing. What I did, and it worked well for me, was I went down the menu until the Settings, then clicked that and went down until the Power Off section. I clicked that and went to Sleep Time, and held the right button down until it was set to 240 (I think that's what the highest # is). That keeps it playing for 240 minutes, after which it automatically shuts down to save power. You have to reset this every time you turn the mp4 player back on.