Well... I bring you some news about this topic. It's been a long time since I was active at this forum. Anyway, in the meanwhile I bought a PSP myself. But let's get to the point.
As Skillster mentioned, except from the Homebrew (User-made) PSX emulator for PSP, there's an official one by Sony going by the name of POPS (available from firmware version 3.0). Now Sony has launched a service where PSP users owning a PS3 are able to download some PSX games in a format launchable by POPS (by paying a price, of course). Let us say at this point that POPS is incomplete (from my point of view) butit runs at full speed (nothing less expected from the PSone makers, right?).
Yesterday (or was it the day before?) a custom (hacked) version of the 3.02 firmware has been released, coming a tool which enables users to convert their own PSX ISO Images to launchable games and transfer/launch them on PSP without the need of a PS3. Well, check
this out for more info on FFVII... it's 100% PLAYABLE!
Note: The tool also allows the user to make a game icon/background picture to be displayed on the PSP menu. In the videos it isn't the same one (logically, because they aren't made by the same person). The second person also forgot to change the game name while converting (you get to see this when he opens the save data folder, 'Hot Shots Golf 2', he forgot changing the name from previous conversions, probably...).
Regards,
Angelo.
PS 1: Here's a PSP wallpaper I've made featuring a not-so-famous shot from the upcoming PSP game
Crisis Core: Final Fantasy VIII know... I suck at Photoshop
PS 2: Hey, Sad Jari, hope you're reading this text, feel free to criticize, I also see there's a spell-checking mod now (You might find it strange, but I've missed you, although all we did last time was quarrel about me saying things I shouldn't say, if you still remember
) By the way, what happened to your post count?
PS 3: halkun, I think I'm in love... with your avatar! MOEEEEEEEEE
PS 4: Greetings fly also to Alhexx, Qhimm and all the others I've forgotten!
EDIT: Well, I'm sorry, I couldn't resist to test it myself! It works!!! It's running at FULL SPEED and sound is absolutely fine, too!
EDIT2: Seems like FFVII and FFIX are running at full speed, too!!
EDIT3: Some people claim that the use of the POPStation converter is legal, as long as one owns the original PSX Disc.