Sweet. I didn't like the first one's battle system, so the SO2 one should be good.
I'm not sure if you're referring to the battle system in SO1r or SO2 itself...
But it looks to me that SO1r is using the SO2 engine, but they've greatly improved the 3D graphics (in the newest screens). The first battle shot of SO1r showed it using an exact copy of an SO2 HUD and battlefield, horrible PSX-quality 3D graphics and all...
I just hope now that they've ironed out some of the flaws in SO2's battle system (for SO1r), and refined it to another degree without going through a multitude of major changes ala SO3. I hope SO2's battles receive the same treatment (and the world map gets a major facelift and framerate improvement on top of that).
Of course, my biggest worry about the PSP Star Oceans is that the SO2 engine port-job will be crappy. Whoever's doing these PSP ports for SE (presumably TOSE) has no frickin' clue what they're doing!
And why the heck do they still have "TGS" over at SO4? Did they even show a trailer?
I dunno, but at least they did show Infinite Undiscovery, which looks AMAZINGLY SMOKING HOT. Probably my most anticipated game at the show.