Well first you have to download the demo onto your pc (dont think you can do it directly to your psp but i may be wrong) and it's most likely a .zip file so you 'unzip' it with a program like winrar (google it).
Once you unzip it you'll end up with a folder that is labeled as what looks like a bunch of random numbers and letters--something like ULUS109001 or what have you. Once you have that, connect your psp to your pc via usb, and open the psp in 'my computer' and i believe the the location you want the demo to go is psp/game/
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