For the record, I've just gotten to Chapter 3 in A Tear of Vermilion (sic) for the PSP, and I'm starting to like what I'm hearing more and more (I wasn't that impressed by a lot of the music early in the game).  My impressions thus far of the game are that Bandai did a craptacular job remaking it (trying to get Avin to walk anywhere I want him to is such a pain!), but Falcom's original story and general game design shine through enough to make it worth playing.

ANYWAY, what I really want to know about is the music.  I know there was a CD release recently of LoH3 and 4 music from the PSP versions, but I would guess that's nowhere near complete.  Does the PSP version use the same music as the PC version from a few years back (whose soundtrack was released early in the Falcom Millennium series)?  If that's the case, I'll just go for those CDs.  What's the closest to an OST to this version I can get?

The 2-disc Legend of Heroes IV OST offered on Falcom's site is definitely the closest you'll get to what's on the PSP game. Conn posted a couple of samples from PSP LOH IV's music some time ago and while it wasn't exactly the same, it wasn't too far off the mark either (and truthfully, I preferred the sound on the OST). Only gripe: The tracks don't loop.

There was a CD released last year, but it was just for about half of LOH3's PSP tracks.

The music for IV is pretty much the main reason I'm glad it came here. It's one of those few RPG soundtracks that does everything well enough, with the handful of requisite stand-out tracks, that it winds up standing out because of it. I'd kill to see Falcom do an all-out version of it, like Felghana's music was to Ys 3's.