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Well it is possible there is something wrong with the psp, but it is more likely that the router you are using is unable to handle the network conditions when the psp is connected. This is likely to occur if any form of encryption is being used, or several other networking devices are connected to the device at one time. However, with some cheaper routers, neither of those conditions are necessary for it to fail.
If the router really is the problem then of course the you have limited solutions depending on the situation. You can try turning off encrytpion, disconnecting other networking devices, or finally buying a better router.
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