wrong. the format is quite simple, and well known. it's basically MPEG-1 video with some aditional header info, and an ADX audio track.
as for wether there is a converter, yes there is one. SFD2MPG, and you can acquire it here:
http://www.geocities.co.jp/Playtown/2004/
not as user friendly as the current PSX video converters, but it'll get the job done.
-LordJames