Well i assume he is thinking of ps2 emulation, where only the the early models of the ps3 have hardware support of ps2 games playback .. the current ps3s don't support ps2 games in any way, so even tho you can dump the ps2 games to iso onto your ps3 you cant play them (except perhaps that cobra dongle .. but that uses software emulation and i hear its less good). Anyways, about something completely different..
PS 2 Game Disc Protections: Well, really on problems here as the majority of "protections" was just size protections. Sure, putting on a large empty dummy file makes it easier for the ps2 to find the game disc .. but as the sizes kept getting bigger it also made it harder for the swapmagic people to toc swap in their games (as they needed a similar sized genuine disc to fool the ps2). Anyways all this dont matter making dumps and running them on ps3 and Iso format is just fine.
I do wonder if dual layer games are supported, but there is only 10-20 of them anyways, and most of them have also been hacked to a 2x single layer version anyways. Those of you with small ps3 hdds might want to iso-injector/dummy-file-maker-injector and change all those annoing giant dummy and other languages audio files to 1 byte size files. Obviously wont get much from a GTA or FF game but your normal racing/sport game usually shrink down to a silly 100-200mb iso (note: dont try to recreate or delete files .. use a injector instead to just change file size so the disc structure is kept intact).
PS1 Game Disc Protections: Now this is where i get a bit worried when people speak of "iso" format. Lots of Ps1 games has since Medievil had on purpose made errors in the disc EDC/ECC. Making a correct backup of those games needs you to make a genuine RAW 2352 byte sector copy and "normal iso" usually dont contain all those extra EDC/ECC data. Quite a effective protection as most early cd-r writers couldnt read RAW and secondly as most people dont know they need to turn off "EDC/ECC auto-correction"-options in their burning software.
Anyways, not questioning the iso format made by multiman as i havnt even checked it yet, but just wanted to warn people that before a 1000 people spam Dean with pm's or spam the forum with "why dont my X game work?" then perhaps its a good idea to check first if the game is protected and fix it yourself by using a patch on your iso's.
Like you could check if there is a protection patch on consolecopyworld.com or similar site. Note: you only need to get one if its a "PROTECTION patch" m'kay? (you wont need a pal/ntsc or trainer patch).