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Yes it should. I have an Apple iPhone so your iPod Touch should work just fine. The PSP should as well as long as it has connectivity with wireless B/G networks which it should. The wireless speed should be enough to play games with others on the PSP. It's excellent on the iOS devices as the speed works great with Safari, Apps, and Mail.
Sorry, there was a problem. Please try again later.it is a wireless router, so as long as it is connected to your internet modem your devices will see it as a wifi hotspot.
Sorry, there was a problem. Please try again later.Don't know about the psp but it connected to my daughter's iTouch with no problems.
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