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[Gigas]

This isn't an error, or at least it doesn't look like one. It basically says "Retrieving the IP address". Check your network options just one more time to be sure? Pretty weird, since your browser doesn't have problems.

Yeah I didn't think it was an actual error message. I tried to reconfigure my network settings a few times with the same results (and I can still connect with the web browser). That message pops up for a second and then it takes me back to the initial menu.

Could be that he's trying to connect with a NA/EU PSN account, I recall getting something like this when I used the wrong account for the game.

When I read your post I thought for sure that would be the issue since I haven't used my PSP in quite some time and didn't know what account was signed in, but sure enough when I checked it was my JP account. I am playing the full game, not the demo. I'm pretty baffled as to what it could be since it seems like it would be a wifi issue, but as I said my PSP connects fine with everything else.