There are a few guides in the main article by CaptainCPS-X but here is another from kristijan1001 as well:
Noob Tutorial to Convert PS2 Games
1. Download This: ps3tools.aldostools.org/ps2classics_GUI.rar / Aldo's PS3 Tools Collection 2.2.2
2. Install AldosTools Collection Run The Pkg View Upon Installation And Click Tools And Select "Associate .pkg Files....." And Quit It
3. After That Download A Ps2 Classic Game I Mean A Ps2 Game That Is From The PlayStation Store
4. You Can Download Ps2 Games By Downloading This: PSNStuff_ver1.8.rar (1.61 MB)
5. After You Download It Run It Then Select Filter And Pick A Ps2 Game
6. After Download Is Completed Click Save Rap
7. It Will Make 2 Different Folders "pkg" and "rap"
8. Go To The pkg Folder And There You Should See Your Game Right Click On It And Press Extract Pkg
9. Wait For The Operation To Complete After It Completes Leave It Like That
10. Download A Ps2 Game In Iso Or Bin Format
11. Run The PS2Classics_GUI Which You Have Downloaded It Before
12. On The Tab Press Encrypt Where It Says: Decrypted Image Press On The Black Folder
13. It Will Open A Window To Select Where Your Game Is
14. Find Your Downloaded Ps2 Iso Game And Press Select
15. After That Don't Close The Window,Go To The exdata Folder You Should See There Something Like This: JP0102-NPJD00015_00-0000000000000000.rap
16. Copy This:JP0102-NPJD00015_00-0000000000000000 In Your Situation It Will Be Different Number
17. Paste That Code Into The Content ID Blank Section
18. After That Press The Three Dots And It Will Open New Window
19. Now Select The File/Rap File From The exdata Folder And Press Open
20. Chose What Kind Of Image Type It Is If It Is 700mb+ Than It Is DVD If It Is Under 700mb Than It Is CD
21. Press ADD LIMG Sector And Press Yes On The Pop Up
22. Then Press Encrypt It Will Ask You Something Again Press Yes
23. Let It Finish After It Finishes It Will Create A File With The Name:ISO.BIN.ENC
24. Copy That File In To The Folder Where You Extracted The Ps2 Classic Pkg The Path Should Look Like This:\pkg\NPJD00015 Capcom Vs SNK 2 Millionaire Fighting 2001\NPJD00015\USRDIR You Paste The File Here In This Folder USRDIR
25. Press Replace When It Asks You,If You Wanna Keep The Game Make Back Up Of The Original ISO.BIN.ENC That It Is In The USRDIR Folder And Then Delete It If You Don't Wanna Just Replace It
26. Then Go Back If You Wanna Change The Name Of The Game To You PS2 Game Because It Is Set To The Name Of The Ps2Classic And You Don't Want That Open The PARAM.SFO And Where It Says Title Change It The Way You Like It And Save It Remove The Old One And Place The New PARAM.SFO If You Don't Like You Don't Need To Do This Step
27. Go Back Again Till You Reach A Folder Named Example:NPJD00015
28. Right Click On The Folder And Press Make pkg It Will Make Pkg Wait Till It Finish It Should Make Something Like This: PP0001-SLPM65047_00-0000111122223333.pkg
29. Copy The Rap File From The exdata folder To A Usb Stick Or A Hard Drive
30. After That Copy The Pkg File On A Hard Drive Or A Stick, Plug It On Your PS3 Go To Install Package Files And Install The pkg By Pressing X
31. Now You Need To Use ReActPSN To Active The Rap:
How To Use ReAct PSN With Raps [Noob Tutorial]
A Lot Of Members Here Are Asking Me How To Use Raps So Here Is A Tutorial:
Step 1. Download ReActPSN 2.23: reActPSN v2.23 CFW341-421.pkg (284 KB)
Step 2. Put The File reActPSN v2.23 CFW341-421.pkg To USB Or Hard Drive
Step 3. Plug The Usb Into The PS3 Then Go To Install Package[Under The Game Selection In XMB]
Step 4. Install reActPSN v2.23 CFW341-421.pkg
Step 5. Make New User
Step 6. Download The Rap Of The Game You Like To Download And Put It In An "exdata" Named Folder On A USB Or Hard Drive
Here Is Some Collection Of Raps: 3544 Raps,223 Edat,92 Rifs(Uploaded And Collected By kristijan1001).rar (8.41 MB)
Step 7. Plug Your USB To The Ps3 To The USB Port Which Is Closer To The Blu-ray Drive And Go To The User You Created Earlier In Step 5
Step 8. Rename The User Like This "aa"
Step 9. Go To The ReActPSN Application Which Is Under Game Selection In XMB And Press X
Step 10. Wait Until It Restarts The Ps3 Don't Take The USB Out Of The Ps3 Because In There There Are The Files Called Raps
Step 11. When It Finishes It Will Restart And It Will Show A Warning Massage On The First Press OK On The Second Cancel
Step 12. Enjoy
33. After You Active The Rap File With ReActPSN Just Go Under The Game Section And Your Game Will Be There It Might Different Picture And Name If You Didn't Change It Before Press X On It
34. Enjoy Playing All Ps2 Games On Any Ps3
From geokhentix: Try using PSNstuff to get an actual PS2 Classic, and see if it even runs; some of the official ones don't run even for some people. If that's the case, generally swapping firmwares or using a different base PS2 Classic seems to be the first things to try.
I would also try using a different region of the game. That's solved a lot of my problems. As for the klicensee, use the one instructed.
To pack your own .pkg's:
0. Install Ps3tools and make sure you associate .pkg files on install(Pretty sure it does this by default)
1. Download a PS2Classic pkg / .rap from PSNstuff.
2. Right click the .pkg and click "Extract to current path..." and wait until it's done.
3. Go into USRDIR and delete everything except for the 1KB ISO.BIN and the SAVEDATA folder
4. Place the .rap file into C:/User/yourname/ps3tools/scetools/RAPS, also copy/paste the filename(excluding .rap), then go into ps3toolsGUI, and go to Encrypt tab. Select the ISO, and paste the name of the RAP file we copied into the ContentID box. (ex: if the .rap file is "EP0000-NPED12345_00-AAAABBBBCCCCDDDD.rap ||||| the ContentID should be EP0000-NPED12345_00-AAAABBBBCCCCDDDD); the klicensee should generate automatically.
5. Add LIMG Sector, and click Encrypt, and select Yes on the following window.
6. After it's done encrypting, put the resulting ISO.BIN.ENC into /USRDIR of the extracted folder you made in step 2.
7. From here, click back twice, and right click the folder that will be named after the contentID of the game you're using as a shell. (NOTE: if the ContentID is EP0000-NPED12345_00-AAAABBBBCCCCDDDD, the folder will be named "NPED12345") Right click the folder, and click "Make Pkg"
8. Rename to package to match the .rap file. (ex. EP0000-NPED12345_00-AAAABBBBCCCCDDDD.PKG //// EP0000-NPED12345_00-AAAABBBBCCCCDDDD.RAP)
The ICON0 / PIC0 / PIC1 can be changed as long as they're formatted correctly. If you want the game to be named after the PS2 game and not the game you used for a shell, open ps3tools and use the SFO Editor, and edit the PARAM.SFO Title to whatever you want. Just make sure you do this before step 7.
On the event you don't, you can replace the PARAM.SFO post install with an FTP, but do note that you have to boot the game once before the new PARAM.SFO is loaded, so it'll still be named after the shell the first time you boot it if you change the PARAM.SFO post install.
Then run ReactPSN and install the pkg. It seems that some games will work only on certain base games. Try a few before you give up.
Finally, from sorrowxiii: How to Run Multiple PS2 Classics from the XMB (Different Method)
How to run multiple PS2 Classics from the XMB. With this method you will have to use reActPSN just once to activate the PS2 Classics Placeholder. Then you can make as many PS2 Classics as you want without having to run reActPSN again.
Here is a video of my PS2 Classics on PS3 XMB - Multiple PS2 Classics on PS3 XMB
You don't need to install the PS2 Classics Placeholder if running games from the XMB. So skip steps 3 and 6. Thanks to Logi for the information.
1 - Download the file below and extract it.
2 - Copy the rap file in the "exdata" folder to the "exdata" folder in your USB drive.
3 - Copy "[PS2U10000]_PS2_Classics_Placeholder_R3.pkg" to the root of your USB drive.
4 - If you don't have reActPsn installed then copy the "reActPSN_v2.23_CFW_340_4XX.pkg" to the root of your USB drive too.
5 - Now plug in the USB drive to the right most USB port in the PS3
6 - Install "[PS2U10000]_PS2_Classics_Placeholder_R3.pkg"
7 - Install "reActPSN_v2.23_CFW_340_4XX.pkg" if you don't have it installed
8 - Create a new User with the name "aa" and login to the "aa" user account
9 - Run reActPSN (just press X), the PS3 should do a soft reboot of sort and if everything went good, the "aa" user should be renamed to something like "reActPSN v2.0 7rif0edat". It wouldn't be exacty like that but something along those lines.
Also from now on, you would never have to use reActPSN for your PS2 Classics ever again.
Now we are ready to make the PS2 Classic PKG.
10 - Install the "install_ps3tools_2.2.4.exe" file. It's in the folder "2-TOOLS [PC]/ps3tools224/"
11 - Next there should be a folder called "PS2_Template" in file I have attached. Open "PS2_Template" folder and you will see another folder "PS2U10000". Rename this folder to what ever you want. Example: "PS2GAME01"
12 - Open the "PS2GAME01" folder and you will see some files. Open "PARAM.SFO" using "PARAM SFO Editor" from Aldostools.
13 - Enter the name of the folder you renamed at step 11 in the 'Title ID' field. In my case it's "PS2GAME01"
14 - Enter the name of the game in the 'TITLE' field. Example: "Final Fantasy XII"
15 - Click save and replace the PARAM.SFO file.
16 - You could also customize the ICON0.PNG and PIC1.PNG files for your game.
17 - Now go back and open the 'PS2Classics_GUI.exe'
18 - From the 'Encrypt' tab choose the 'folder icon' below the 'Options' button. And load the ISO file you want to encrypt.
19 - Now click 'Add LIMG Sector', click 'Yes' and click the 'Encrypt' button below. Again a message will appear, click 'Yes' on that message too.
20 - When it finishes encrypting the ISO to "ISO.BIN.ENC". Cut that file and move it to "PS2_Template/PS2GAME01/USRDIR/" path. so it would look like "PS2_Template/PS2GAME01/USRDIR/ISO.BIN.ENC"
21 - Go back to the "PS2_Template" folder and right-click on the "PS2GAME01" folder and click 'Make PKG...'
22 - Now copy the newly created PKG file to the root of your USB drive. Don't worry about it's name. You could just rename the PKG if you want.
23 - Insert the USB drive into one of those USB ports on the PS3 and install the PKG. Now it will show up in the Games column in the PS3 XMB.
24 - Run the PS2 Classic and it should play.
So each time you want to make a new PS2 Classic just follow the Steps from 11. It's easy and quick!
Happy PS2 Gaming!
Finally, below is one more guide to convert any PS2 ISO to a PS2 Classic from isaacking14, as follows:
Convert any PS2 ISO to PS2 Classic Guide
Step 1. get a ps2 iso, have multiman v4.40, get a usb, get a jailbroken ps3 (preferably running rebug 4.41.2 lite), and go to http://www.mediafire.com/?b1wwlzht887su7s download and extract the ps2 tools.
Step 2. go into the pen drive folder and move the two pkg files ( reactpsn and ps2 classics placeholder) into the root of your usb.
Step 3. get on your ps3 plug your usb in and install both package files.
step 4. create a new user on ps3 and name it aa.
step 5. get on the new user and start up reactpsn.
step 6. go back to your main profile and go down to ps2 classics placeholder then press triangle and click information. if it doesnt say buyer reactpsn v2.0 2rif oedat then you did something wrong.
step 7. go back to your computer and in your ps2 tools folder click on ps2classicsgui v1.3 folder.
step 8. go to google and type in msvbvm50.dll download and a website called http://www.dll-files.com should pop up then all you have to do is download the zip file and put it in your ps2 classics gui v1.3 folder then extract it.
step 9. drag the dll file you just extracted to the ps2classics gui app and open it.
step 10. click the encrypt button right next to the decrypt button.
step 11. click the black folder and open your iso file there.
step 12. go to your ps2 classics gui v1.3 folder and click on the codes text file.
step 13. copy the content id from here to the content id on the ps2classicsgui app your running.
step 14. copy the klicence from codes to the ps2classicsgui app that your running.
step 15. now on the ps2classicsgui app click on add limg sector and then click yes.
step 16. in the bottom right hand corner click encrypt and then click yes.
step 17. wait patiently until the process has completed and you should get an iso.bin.enc file. it may be hard to locate sometimes so just search your computer for it.
Step 18. now here comes the hard part... go to http://www.sendspace.com/file/izyf2z and download the ps3tools.zip
step 19. extract the zip file and open the ps3 tools collection v2.3.7 app.
step 20. as the app installs it will say extracting files to... and this is where your ps3tools folder will be located.
step 21. you will get an error message but thats fine just click cancel and x out of it.
step 22. go to the ps3tools folder then click on ps3tools then click on tools.
step 23. go back to ps2classics gui v1.3 folder and copy your mvbvm50.dll file to the tools folder.
step 24. drag the dll to an app that is named pkg content id. open it then close it and then run it as an administrator.
step 25. in your tools folder click on an app that says pkgview open it then click file and click open... it should give you a popup but just ignore it.
step 26. find your pen drive folder and open ps2 classics placeholder r2.
step 27. highlight ps2u10000 and right click it then click extract to source folder.
step 28. go to your pen drive folder then go into your ps2 classics placeholder folder.
step 29. go into your ps2u10000 folder then go into the usrdir folder and copy your iso.bin.enc to there.
step 30. once thats complete go back to your ps3 tools folder click on tools and drag your msvbvm.dll file to the pkgcontent id app again.
step 31. now that that app is open go back to your pen drive folder and go into your ps2 classics placeholder r2 folder.
step 32. drag and drop the ps2u10000 folder to the pkg content id app and once its done you should have a brand new ps2u10000 pkg file.
step 33. copy the pkg to the root of your usb and replace the other one on there already or ftp the pkg to the playstation 3 and put the file in the dev_hdd0/packages folder.
step 34. install the pkg on your ps3 and go to multiman.
step 35. go all the way to the left and click file manager/mmOS.
step 36. click on ps3 root the go to dev_hdd0.
step 37. if there is not already a folder called PS2ISO make one.
step 38. go back to your computer and get your original ps2 iso not the iso.bin.enc and ftp it to your ps3 dev_hdd0/ps2iso folder or you can copy it to your usb and move it from dev_usb000 to dev_hdd0/ps2iso using multiman.
step 39. go back to the multiman xmb screen and go over to the retro section and click refresh.
step 40. you should see your iso. rename it if you choose to do so and click it. it should tell you to convert it to ps2classics. click ok or yes and let it encrypt the file. once its done you can delete the iso.
step 41. click the ps2 classic game and it should return you to the main xmb.
step 42. from here run ps2 classics placeholder and FINALLY PLAY YOUR GAME!
Note: after all steps are complete you can easily play ps2 games on your ps3 by simply getting a ps2 iso and ftp-ing it to dev_hdd0/ps2iso and converting it to ps2 classics on multiman and running it through ps2classics placeholder.