All the games and UMD movies can play in any PSP, however, you need to be aware that if you plan to play games multi-player, both of the players must have the UMD (disc media) from the same region. If I have a region 1 Wipeout disc and you have a region 3, we can't play wi-fi head-to-head. That sucks.
Since the white (Ceramic) coloured PSP was released more recently than the black one, it has the most up-to-date firmware, however, if any of the games released that are targeted to the white PSP use the updated features of essentially the new OS, then the disc will prompt you to upgrade prior to letting you play. An example of this is Virtua Tennis. I could be wrong though, so don't quote me.
not all UMD movies can play on the psp, they are region-coded. only games are region-free. anyway a PSP is great entertainment device, i pop in a few music videos/tv shows/funny crap in it and watch when im bored outside, but you need to buy a memory stick for that function