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u could try formatting ur memory card using the option under settings...
But, before u do this, let me warn you that u will loose all the data in ur memory card after formatting and there is no guarantee that usb connection will work.
or if u have a spare card, then try inserting that into ur psp and see if it connects...
wish i had a spare card... if i format... i would only lose... well everything....Fuuuuuuuuuuuuuuuuu