Well first of all maybe you cant play videos because your psp:s firmware is too low or you have putted them in wrong folder or they are in wrong format because psp dont know how to play maq files but instead it plays m4v files. When you connect your psp to computer and there is folders in the drive example. video and psp. put your videos in the videos folder.
Then about the internet connection, are you using the right settings wich you have made with the wireless internet wich you are using when conneting psp to net?
AND THEN ABOUT YOUR FIRMWARE! i would recommend you to upgrade to dark-alex's custom firmware so you could also play different video formats and play games wich you have downloaded. For detailed instructions how to upgrade your psp searh google for how to upgrade to dark alex's custom firmware. BUT MAYBE YOU SHOULDN'T UPGRADE , AT LEAST NOT YET IF YOU EVEN DONT KNOW HOW TO USE PSP AND IT COULD ALSO BRICK YOUR PSP!
Hope this helps!
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