Help a newb out deciding which psp system to get for video out

I have a Loewe 9383p which is one of these:

they are not flat screen and it was manufactured in 2003 but it is still a large and I believe expensive tv back when it came out so would I be able to enjoy video with a psp 2000 and composite/component cables or would I have to get the 3000 model? It says they are digital televisions I believe on top of that link but what does that mean exactly? Does it mean they support progressive scanning and high definition? I thought only plasmas or lcd (basically flat screen) did that? I want to get the 2000 model because its a lot cheaper used online but I dont know if it will work or look descent on my tv. Also, can you play streaming videos from the internet without too many hitches on it? I ask these questions because I am thinking of getting one so I can watch my favorite shows and movies by downloading them off the internet and playing them on my television, would it be worth it for that (I like some games too but dont travel much). I cant get my mom's laptop to connect to my tv using vga for some reason as it appears really fuzzy and scrambled image but the laptop has some viruses removed thus it doesnt have audio and some other drivers were remove din the process.
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