PspWxp stands for PlayStation Portable Windows XP (based off of winpsportal) and allows you to use Windows XP on your Playstation Portable. Well, really it is just a set of Webpages that look similar to Windows XP, but they are offline. It has some useful features lots of games and applications. You do not need to access the Internet for most of pspWxp, only to access the links and use the Web browser.
As it is only 1.5 Megabytes in size, it will fit on any memory card. pspWxp will not harm your PSP. Version 1.02 does not show previous app/game on starting a new app/game, fixed music menu button, five card stud poker slightly changed and bug fixes.