Draco, none of that information is confirmed for the North American release. Expect the handheld itself to cost $199 and the games to cost $49.
As for the graphical power, at it's best, it's capable of displaying PS2-quality graphics. As for having your old PSX games "transferred", no I'm not sure that would work. It's two completely separate mediums and two completely separate types of coding between PS1 games and the PSP hardware. Plus, the PSP reads DVDs about the size of a Gamecube disc, so a PS1 or PS2 disc wouldn't even fit. Unless Sony intends to release some sort of PS1-player peripheral (which would honestly be friggin' retarded), I wouldn't get my hopes up if I was you.
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