Note that the rest of those variables (and technically $PSPDEV) are obsolete. There isn't a pspcvs any more and all pspsdk binaries will go into the bin/ directory wherever the pspdev tools are installed.
So just adding /usr/local/pspdev/bin to the PATH will be enough.
on another note, I'm currently setting up the psp toolchain in cygwin as well, and I know the readme said it was going to take a long time, but its been running for over 6 hours now. Mind you, it is progressing, its just soooo long haha. oh well
btw my machine is 933mHz, so that could be it, kinda old
I dont know how many packages. I installed all the packages when I installed cygwin, but that was a month ago or so.
All I did was follow the instructions in the readme, and it did a few downloads when I started the script, and has since been going through what looks like a config/make -ish routine