The update has been announced for some weeks now, and many compatible devices have received their updates, but the PSP version has yet to be released. The update has many new cool features, and extras. The display looks amazing, and it is something to look forward to, as a PSP Homebrew fan. When this version releases, you'll be the first one to know it, here on Dashhacks.
So, there's a brand new main menu, similar to the XMB (xrossmediabar) menu, used for the main menu on the PSP and PS3, and many Sony devices. If this menu doesn't get you excited, don't worry, you can still choose from the original main menus! Libretro is working hard to make the emulator as amazing as it is.

We could maybe push out a PSP version of RetroArch 1.2 in the upcoming weeks. Iím hoping to get back with the main contributor (aliaspider) who worked on these ports so that we can be assured that we can at least push out the PSP version in a more or less stable and decent state.