I have played GoW Chain of Olympus in my PSP using my LCD as the screen -- you need to buy the video cable that plugs into the AV outlet in the PSP (where you connect the headphones). There are a couple of versions if this cable, i got the one with the component video (RGB) and it looks pretty nice. You need to play with the settings in order to get the picture right otherwise it will look really crappy since you're displaying the very low resolution 480x272 in the 1920x1080 LCD screen. But, its very simple to set up. BTW, the only connection I ever make between the PSP and PS3 is for Remote Play or to transfer files, I don't know how to use the PS3 to display PSP games...
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