Umm I'm not sure. Only tested it with a full psp game license (patapon 2 in my case) and the demo booted no problem.
You most likely have to do the whole "rebuild database" thing as well like when doing custom bubbles for it to work.
Still not sure if it works with a ps1 rif or not, I'm gonna guess it needs a psp game one though.
Yeah I still get it and I used a psp game now, did you do anything with eboots and signing??