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wow, This looks superb! Look, I've never done any real hacking like making stuff on my own in my life and I think this may be the first, should I start here on PSX, would it be easy and finally, The real question, Could we make it run through USB/Ethernet Cable/Internal Harddrive so we could play all of our old favorite backups? I loved the ps1, and it had some of the toughest games of all time not to mention classics like Pac-Man, Final Fantasy, Tekken, Street Fighter, GTA, Gran Turismo, Crash Bandicoot, Spyro and others
Well, PSX games written with PSXSDK can be saved in a licensed BIN/CUE for both PAL or NTSC systems and be burned in a CD-ROM afterwards. Although, your console must be either modchipped or be able to read pirate PSX games in some way (swap trick, for example). If you want to run your games through an internal harddrive, look after PSIO (google for it), a project started (not finished yet) by an Australian PSX enthusiastic which consists of a device to backup games and made them playable through an SD card.
I am quite curious, will we be able to base our projects off of our favorites, like Wild Arms, Crash Bandicoot, or Spyro?
PSXSDK has no support for 3D games for now, since there's scarce documentation about GTE around the web. Even though, you can write your own Wild Arms/Crash Bandicoot/Spyro 2D clone if you have enough C programming experience.