How the Xbox 360 and PSP apparently interact?

It's no huge deal, come to think of it, but for those wondering exactly how Microsoft's forthcoming Xbox 360 is going to interact with Sony's PlayStation Portable, the answer is deceptively simple: it's a mass-storage compliant device, after all. Which implies, of course, that the Xbox 360 will also be able to grab and manipulate data on any USB mass-storage compliant device from its dashboard, which isn't really blowing anyone's mind reading this, we're sure. But while we're on task here, someone care to help explain that mysterious iPod integration they've supposedly got cookin'?