Let's Play Europa Universalis 2. You make the decisions.

[BurnEmDown]

Still waiting on that EUIII game.
Also, real men play the magna mundi ultimate mod.

[yawmwen]

If you allow Moscow to conquer Pskov you will probably get trapped since Moscow will become a more powerful force. You need to either try and take what you can from Pskov or possibly fight with your worst enemy against Moscow to neutralize a growing threat. Do whatever seems most viable.

Also, did you try getting good with Sweden? Their aid in a war would be invaluable and could secure your place in Russia.