It turns out the Sony PSP is actually good for something after all! (I kid.) Some ambitious software hackers have cracked Sony’s PS1 emulator for the PSP. Yes, that emulator — the one that is used to play the PS1 games that they sell on their PS3 store. Except for now instead of having to pay for the limited selection of games, you are now able to play any Playstation ISO (the CD version of a ROM) on your PSP.
Of course, there is some legal issues involved, but if you rip your own PSP games you should be OK. Now if only there was a similar method to play your classic games on the Wii’s Virtual Console without having to buy them again.
Supposedly, most every Playstation game runs at full speed with this emulator, but some PAL games have some speed issues at this time.
More Information (this link is down ATM)