iPod vs. PSP question

[20Five]

So I heard there is a software update or something with the PSP that now allows you to surf the web on it? is this true?

I too am in this quandry, but thinking either an Ipod Shuffle, or a PSP.. My only use as a music player would be to walk to work, about 15 min walk.. so i dont need tons of storage space, and the size of it doesnt really matter either as i could probably just throw it in my backpack if i had the bigger psp.

as far as games and movies, i wouldnt mind having something portable to play when im lounging around my apartment, the GTA looks sweet.. but im not convinced i need the added game/movie ability of the psp.

something like web surfing, or added other features might swing me towards a psp.. otherwise i'll save some bucks and get the $100 shuffle.