Sounds like there is something going on with the security key which is usually WEP or WPA and the psp may not be accepting it. Make sure on your wireless router that you don't have a key enabled on it. Best best on most routers. Hold down the reset button for 30 seconds and let go, this will reset your router to factory defaults.
Now that your router has no security on it. Try connecting the PSP to the router again. If it connects then you know the security key was corrupt. Now you can go ahead and put the security key back in. Make sure your PSP is configured to use the key so it can connect.
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