Open up the PSP file in PSP8+, then go to save as you normally would.
Only when the box pops up to ask where you wish to save it too, Click Options!
A box titled Save Options will now be on your screen, with two tabs.
Compression > Mine is set at Uncompressed
& Verison > Save As: PSP7 Compatible File (Or which ever one you wish to use)
Press Ok, and Save.
Hope that helps! 
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