C|NET have a handy review of the official browser for the PSP posted up that walks through its strengths and weaknesses.Javascript appears to be fully supported, as well as podcasts. Sony have also tried to make typing as easy as possible with a virtual keyboard that has special shortcut keys for http:// and .com.
The main downsides are the lack of Flash support, and a freezing of the cursor while images on the page are loading.
Version 2.0 of the PSP's firmware that includes the browser has only been released in Japan so far, but it apparently works fine on U.S. PSP's and is available to download on PSPUpdates.com.
UPDATE:
Sony have stated that installing the Japanese firmware on the U.S. PSP will render the warranty void, so it might be advisable to wait until 12 August when the U.S. update is released.
C|NET: Inside the PSP's new Web browser
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