I finally got around to use it. And I gotta say...compared to how early versions of swiss or DML and DM behaved, this was a walk in the park.
1. get devolution from the first post as well as
cleanrip.
2. use cleanrip to dump your game
3. move the iso from the root to a \games subfolder (I put the other two created files with it, but that's probably not needed)
4. start devolution. Select your game and start it.
That's all there is to it. I gotta admit at first I thought it was reading from the disc. But that blue light thingy still happens without the disc (had read over that part in the OP).
I gotta admit, though, that I've purposely tried Star fox adventures (PAL), which is about the only confirmed working & audio streaming game I have (I'll try eternal darkness soon).
Also interesting: this program works fine under uneek2o as well (though it probably can't locate the USB drive there).
There's one thing, though...the game said the memory card was corrupted. Is that normal, and can I to format without fear of losing my entire SD-card?