Ok I managed to get pspdisp working using a usb cable and the libusb driver however I can't get the wireless mode working.

This is pspdisp version "0.5.1.48"

I manually set the IP of the PSP to "192.168.1.157" and I can ping it from my computer.

However on the psp it just stays on "Connecting to 192.158.1.101" and never changes.

I assumed there was a problem with my firewall so I added the ports:

17584
64506

To my firewall as I was told those were the ports to open.

I even used a port scanner on my IP to check to make sure the ports were open and they are.

I am puzzled as to what it could be.