We really wish we had a better understanding of the Oblivion PSP game (formally known as The Elder Scrolls Travels: Oblivion) but we still don't get it. We saw the first nugget in OPM in the fall of 2006 and it's been radio silence since then. Last we heard, folks who pre-ordered the game were being called by retailers in November to learn that it had been canceled.
Today though, CVG thinks they might have found a sign of life with a listing for the PSP title appearing on Amazon with a ship date of June 30, 2008. Bethesda was mum, telling us: "[We] still aren't talking about what's up with Oblivion PSP. We'll let folks know when that changes." So, a listing, but no confirmation.
[Via CVG]

That a PSP version is coming has been known for over a year, but as far as I know, it hasn't been announced that it will be 3D. I very much doubt it's a port, it's much more likely to be a completely new game
edit, heres a link to screenshots of the game
http://www.gamed.nl/messages/33960.jpg
From what i read, it aint going to have the huge expansive worlds, and is going to be mostly in dungeons and castles and whatnot
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