PSmonkey has posted a screenshot of the game which is now working in his Nintendo 64 emulator for the PSP, he posted this bit of news:
The bug was Eeprom. While mario & waverace still dont work, I think ths more has to do with emulation bugs (made a few trying to get mario working). All 3 roms (which required 4k eeprom) now progress.
Starfox does get alot farter then this, it's just the map screen is very hard to figure out (hle bugs). I probably could get all the way ingame but did not have the time to check it out. $n!pR will do that for me in a big and come back with the results later.
-- Update by PSmonkey --
I have also just fixed a missing RDP opcode. As a result mario kart is now running. Please see website for screenshots & more details.