PSP games are region free. However, UMD movies are not. I own PSP games from US, Japan, and the UK and they all play fine.
Edit*- I've heard some games in certain regions are locked. But it would be in the minority.
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The PSP does have partial regional lockout, and uses the same regions as DVD. As of February 2006, the lockout is only used for UMD movies and not for games, although Sony has hinted it is up to the developers if they want to include region restriction in their games. As of February 2007, copies of Battlezone for the PSP that are released in certain countries are region restricted, however it is unknown if there are other region-restricted PSP games in the market.
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http://en.wikipedia.org/wiki/Regional_lockout