I was looking around on the internet for a DVD to PSP converter, an I found this;
A company that is selling a DVD converter to PSP, and in the pack there was included a UMD with the emulators: Gameboy / Gameboy Color, NeoCD,Super Nintendo, Sega Genesis, Neo Geo Pocket, Turbo Grafx 16, Nintendo (NES), Sega!!
And in the FAQ there is a question about what firmware u need to get it work an they says; With the PSP firmware v1.52 and above you cannot run emulator or homebrew applications.
Is that means that u CAN do it on 1.51??
I havent try this, but it seems to be reliable company.