@Nottle: The only other version is the PS1 Japan only original, personally I would hold out for a Vita price drop as I didn't get the PSP slowdown on my Vita.
@ashogo: You can form pacts with demons through the conversation system, to get items/rumours from them. I think that's it. I do know the link between the universes but it sort of spoils the end of the game; put simply, yes its an alternate timeline.
I didn't find it too grindy, the random encounters make sure you fight a lot. However, I did stick to one persona per character, compulsively explore every inch of the maps and got lost often in the early game due to the dissonance between the map and camera ( I didn't find out how to get the big map till half way through).
Also, one good piece of advice for beginners, is that once you max out one of the starting personae (I think its Maya's) you can turn it into an accessory that will give you an idea of the fusion spells; this is incredibly useful as fusion spells can be way overpowered, and will speed up the rate your personae levels up and earns bonus spells and stat increases.
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