hmm I was getting my hopes up after reading it then at the end him saying it doesn't work crushed all my hopes and dreams. Unless he continues and keeps trying.
Sony has one as reported HERE, but as for a homebrew version currently Snowydew of Gitbrew is still experimenting on mounting PSP games on a PS3... although as mentioned in the OP it does not emulate vram meaning most games won't even make it to the title screen.
In the past there have been fake ones floating around the Internet though, so as you mentioned it's not worth the risk in trying them as they will likely brick your PS3 console.
I have a PAL 60GB software emulation PS3, and in dev_flash0 there is a folder named psp_emu. What is it for? Does it allow to play PSP iSOs/unpacked games?
Long time no hear a long run to build up the right team but finally it's here and we allready do one step after another.
We made some progress on PSX games (not like Team Deamon Hades much better -no offence-) and now we need the help of the scene with psp mini's to also hack them
If you have some original legal buyed psp mini's from the psn store at home and want to support us just send us your mini together with act.dat, rif and idps of your console.
Just read Snowy's aka Snowydew or mine twitter message for the email address or send it direct to me.
If you need help in dumping your mini and provide the other files ask here and i will help you.
At least i have this time a litle candy for you: TeaM AC1D also successfully dumped the first games !!
But the hard part will be to correctly rebuild the elf so we can make the scene again a free one.