The only thing you'll be able to do with it is use it like a card reader on the 360, is my bet. The article said it can use the PSP because it has a USB connector, if you use the USB cable and hook the PSP up to your computer currently, it acts like a card reader so you can toss movies and music onto the memory stick duo.
The way the PS3 expects to use the PSP will be MUCH difference; wireless and with games and stuff.