I swear this modding my PSP adventure has been an interesting one. As talked about in part 2 installing custom firmware is rather easy. What hasn't been is converting PS1 games so they run on the PSP. I hope none of you used popstation as I previously recommended, as there has been nothing but virus warnings when it comes to that program. The Ashens virus is mentioned often.
So how do you really convert ps1 bin,iso, or image files so that they run on the PSP. The real program is called "Ice Tea" and can be found here on Sourceforce but even then there is a trick to this program. Once you load up the bin file it will give the game's ID number. You know the number that appears on Sony's game. Be sure you write this down. Now make the eboot.pbp. But before you play it on the PSP you need to place the eboot into a folder with that number on it. Then you can place it in the GAME folder on the psp and it will work.
I hope you find this helpful, now since I have a modded PSP model 1000 I will be trying the apps out and see what works...but more on that later.