AV Watch Japan has a bunch of pics of the PSP from the Tokyo Game Show. In the pic at right it actually looks a lot bigger than I had imagined, but looking at the other photos it may just be a trick of the light (or of small Japanese hands). Perhaps this gameplay video will give you a better idea of size, as well as the capabilities of the machine.
In other PSP news, it seems that following on from Sony’s MP3 “well duh” moment, the PSP will include MP3 support. I couldn’t imagine using this beast as my primary MP3 player, but could easily imagine rocking out to some MP3’s while doing some hardcore 3D gaming on the bus. Wonder if it multitasks?