Just received note from the lovely folks over at Neuros Technology. They’ve fixed the incompatibility issue with video playback on the latest PSP firmware version, 2.70.

We are excited to announce that we have released a firmware fix for the Sony PSP incompatibility that we discussed in our previous email. As you know, after Sony released firmware version 2.7 for the PSP, some video files did not initially work after Sony’s upgrade. We have fixed this technical issue by releasing a firmware solution of our own.

For more information about both firmware upgrades, and our personal take on the situation, you are welcome to read our press release.

The update offers additional recording options and other feature enhancements, including doubling the bitrate for recordings made for playback on the iPod. Our web site provides all the details of the firmware release.

Stay tuned for upcoming product announcements, as our list of supported devices will increase dramatically over the next few weeks. We work hard to create products that increase in value over time, so that the Neuros device purchased today will do more in the future: support more devices, increase functionality and stay with open formats that allow flexibility and freedom.

With that said, fetch a copy of the Neuros MPEG4 Recorder 2 F/W Upgrade.

And if you want your very own MPEG4 Recorder 2, head over to Neuros Technology to pick one up.

p.s. Yes, we have selected the winning contestant for the PSP Hacks Website Redesign Contest. This will be announced shortly. Stay tuned!