Once you have upgraded your firmware to 3.02 OE-B your PSP is ready to play downloaded PS1 games from the PS3 online store, if you have aquired any of these ready made games just put them in the PSP/GAME folder of your memory stick and play them straight from the Game menu.
If you want to play your original PS1 games you may have in the loft, or any of the many sweepable original PS games, you need to convert them. The 3.02 OE-B firmware download comes with a nice tool to do this called Popstation The one included with the firmware is a very basic command line tool, a GUI version is much more user friendly with better options and includes ALL required files
1) First of all you need to create a usable file from your original PS1 disc. The best tool I have found for this is Alcohol 120, although this is not a free program. Nero should also work, as should any CD/DVD ripping type prgram with which you can create disc images
2) A quality rip of an image is essential, I have found that a BIN/CUE image rip is more compatible than a standard ISO, and so far I have only been successful with Alcohol 120. If you need more help ripping a game to an image file let me know
3) Download the Popstation GUI version found Here
4) Run popstationGUI.exe and check out the various options

Choose the .BIN file (or .ISO), choose the location of the final game conversion to be saved to.
If you are using an original PAL PS1 game then check the 'Convert to NTSC' box, PAL games produce more graphical glitches
The other sections are purely optional
Game Title, Save, ID - If you want to have more than PS1 game on a memory stick you need to distinguish between them with the Game ID number, otherwise all your games will use the same game save files, select the game from the list or use a unique number if not found (Unique number untested, In theory you could pick a random game then change the Game Title and Save Game fields manually)
Customize the Game - Because Popstation uses original PS3 store game download files to convert your old game, unless you change the game images all the conversions will use the menu icons from the game 'Hot Shots Golf 2' either create your own images or go here: http://pixelstation.pixelreview.net/ for some excellent ready made images, most just use the small menu icon and the backdrop image. Point popstationGUI to the image files you have saved and click 'Preview' to see how it will look on your PSP
5) An EBOOT.PHP file and KEYS.BIN file will be created in the output directory you specified, copy them into a folder on your memory stick in: PSP/GAME/'GAMENAME'
If you actually call a folder 'GAMENAME' come and see Mr RO-BO after class
6) Launch the game from the normal game menu, press the Home button to access a PS1 emulator menu while running
Notes:
Every failure I encountered while trying this out with various games was due to a crappy image ripping program and .ISO files
Might be an idea to check here for a compatibility list of games, although as there are many different disc ripping programs and a few different Popstation GUI's around it might be worth a go anyway
If you're going for sweeping ready made games don't forget to search for the terms PS1 and PSX!!










