Sony Details PlayStation Vita UMD Compatibility at Retailer Briefing
We could be getting specifics on legacy support shortly.
A retailer claiming to be in attendance at a Sony hosted PlayStation Vita sales briefing says that Sony distributed a pamphlet containing details on how PSP owners will be able to play their current library on the new system. The retailer did not provide specifics, saying only that details will be shared at a later date.
Sony previously said that it was looking into a method of letting players use their UMD collection on Vita, but never fully committed to offering such a feature. Assuming the retailer report is accurate, we should finally be getting details shortly.