kinda its called SMOOTHING you just need to turn it on ...
With the PS2 tray open, and at the browser / options screen, hit triangle a few times. It'll take you to the PS driver screen. where you can change disk load speed to fast loading and texture smoothing options
Not fantastic and sometimes not noticeable in some games ... although it DOES work on some and makes them look a little less blocky
This however has been greatly improved in the PS3 version including upscaling with some games (mostly PS2)