PSP is about a good a phone as it is an MP3 player, which is that it isnt much good at all. I cant think of a reason to use my PSP instead of my ipod or zune
There's nothing really wrong with the PSP's MP3 playback though. I could take my entire library of songs and put it on my PSP, too...but I'll just stick with my iPod for that. But I do think that the PSP's sound quality is actually a bit better.
I use Skype to talk to my family back home, but that's it. I'd use Skype on PSP but I doubt I'm going to buy a mic just for that.