On July 27th, Sony released PSP firmware 2.80. According to the IGN website "Sony has reconfigured the Music, Picture and Video folders (likely in preparation for the arrival and implementation of the PlayStation 3) so that they are no longer inside the PSP folder -- now, all of your multimedia lives on the root folder level, with only your PSP save games and downloads left in the simplified PSP folder. ..The addition of a "Video" folder should be of interest to many who have cursed out the PSP's multimedia functions. Now, at last, you can simply drag your PSP videos into a proper Video folder, rather than the arcane "MP_ROOT/100MNV01/" structure that Sony used before. Better still, videos can be named whatever you want (previously, they had to have a special codename to be recognized by the PSP.) This change is very encouraging, but there still seems to be some frustration not worked out -- users are reporting that standard MP4 video works fine in the folder, but the more advanced AVC video format is not being recognized yet. We'll be investigating this set-up to see if there's a trick to using this folder and whether it can hold any type of PSP-compatible video."
In light of the above, do the instructions Roxio includes with Toast and Popcorn still apply to where videos should be placed or can they now go in the new "Video" folder?