Not a bug as such, more a limitation.
When I try to rip a foreign region Video UMD the psp freezes and has to be powered down.
If the PSP can tell the difference between a game umd and a movie umd, then could it be possible to temporarily trick the psp into thinking a video umd is a game disc instead?
Assuming that games are multi-region then that might bypass the region check and we would be able to rip the foreign region video disc and then play it back as an iso.