Heres how it runs for now
1) Put the ps1p and ps1p% folders in /PSP/GAME
2) put scph1001.bin and psx.iso in the ps1p folder. psx.iso is any ps1 game image in IMG, ISO or BIN format. Currently there's no menu (sorry) so that's the way to select a game at the moment.
3) open the emulator and it will run psx.iso automatically.
About the beta i have the Anonymous Coder posted this to me:
This release does NOT have a dynarec, yet--this is being worked on currently.
Expect a 2x or more speed increase with the dynarec

This Playstation Emulator will not be released till its ready but by the looks of it its gonna be awesome and even in beta stage im very impressed. I can say its nothing to do with PCSX in any form and its not by Zodttd just to stop rumours, i actually dont know who its by but as soon as i know more info etc i will let you all know.
The emulator is running on both v1.0 and v1.5 Firmware, ill test on later versions when i get time 
BTW the screens are crappy and i only have a limited number of PSX Games to choose from but as i scrounge pinch and borrow more ill have more info
UPDATE
A few things i didnt mention earlier theres no sound at the mo or wasnt for me anyway and although games are working perfectly they arent yet full speed although some are very good.
Whilst checking other sites ive seen some stupid comments saying its a fake, well if its a fake then im enjoying playing PSOne on my PSP. OH and one last little Dig nice work to them sites who removed the watermark and totally didnt credit this thread, next time ill slap the watermark in the middle.
For more information and downloads, click here!