Seeing as how I have the PSP and GP2x, the PSP emulation is by far better. I was very disappointed with how bad the GP2x emulated a lot of games (ex: CPS2) that the PSP could do without a problem. Hell, you can emulate many Game Boy Advance games at full speed on the PSP, which you'll be lucky to even have a game playable on the GP2x. As far as I know, the second version of the GP2x doesn't change any of the internal hardware, but adds a touch screen. The GP2x also would freeze up a lot. I'm not sure what the differences of the second version of the PSP versus the first version of the PSP are though. Also, one other thing is for sure, the PSP has a much better and sharper screen. It's a huge difference when looking at games being played from the GP2x and/or PSP.