The QPOINT Software Group is working on BlueKVM, a port of the J2ME technology's Kilobyte Virtual Machine. It's basically a Java Runtime Environment for the PSP.
You can download a demo version of BlueKVM, if you want to see for yourself how running simple Java code on your PSP works.
The installation instructions should be in the readme file in the downloadable archive below. Also, please take note that the developers warn that the "software is provided 'AS IS', without warranty of any kind." and that you should "Use at your own risk."
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