For the most part, yes. I don't know about the newer SM disc set, but the older ones had a TOC limit--somewhere around 4.35 GB. In other words , you can't use it on full single layer discs (4.37GB) or dual layer discs (up to 8.5GB). For those you would have to use a GameShark or Action Replay and let a normal disc change (no bypass device) spin up a normal disc that was larger than your backup disc, and then use a bypassed disc change to swap in your backup, then boot the game. A real pain in the arse, and can risk damage to your drive mechanics and discs if you frequently play large games via backup.
In all honesty, for the cost (about $25) vs. the headache and stability of the machine, you'd be better off spending just a bit more to get a quality modchip. I haven't followed the development in quite a while, but I think the clip systems have come a long way so you don't have the tricky soldering to do anymore. Of course, you could send it to any of a dozen or more users here who could do a quality soldered solution for a reasonable price.
Trust me, you will be much happier with a truely chipped solution!
A lot of stores have dropped the mods due to some changes in the legal scene, but you might still find some info/chips at these places:
(I know, these are really old, but they stilll have some stuff. Anyone please feel free to add newer sites if you want)
BTW, is the Magic camp still putting out a viable product these days?
If it ain't broke don't try to fix it! But, hell if you can tweak that bastard just a little bit more....hehehe.