No, the video you may have seen of it running on a PSP is just a video being played on a PSP.
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You can buy all burnout games for ps2 besides paradise and legends. Here is a list of all the ones you can buy; -burnout -burnout 2: point of impact -Burnout 3: takedown -Burnout 4: revenge -Burnout 5: dominator Burnout legends is for psp, and paradise is for xbox, ps3 and pc.
You go into the garage and click "paradise bikes" and choose your bike, your gender and press okay
Burnout paradise is a game focused more on free roam than anything else. Blur is more focused on the races. I personally think the multiplayer on blur is better than on burnout paradise, because you can level up and get new things, but burnout paradise has good multiplayer too.
NO
It depends on which system you are playing on. i have mine for the psp and i recommend Burnout Legends.