Hmm.. Problems to be ironed out =]
1. Get full speed working, Its 100% possible, the psp emulates psx at 100% on 222mhz =]
2. add SD saving, to PSXSAVES folder
3. Make sound work.
4. Add multiplayer support.
5. Since PS1 games are CD-ROM then we have a problem with my suggestion, although there is a better solution, Get ps1 Isos, get 8gb DVD-ROM disc, burn the Isos to the disc through windows as ISO Data files, DVD-ROM gets read through PS1 emulator using LIBDI, So basically, we can have about 6-12 Actual full ps1 games on a 8gb dvd disc, No more swap disc for swap disc games =]
6. Double Disc Plugin, so when it says, please Insert disc two of metal gear solid or for any other game that does disc swapping, Wiisx would detect this and Give you the option to swap to a different Iso, from either disc or Sd card.
and as for controllers, you can use a actual ps1/ps2 controller on the Wii's Gamecube ports using this adapter.
http://tinyurl.com/PSX-GC-adapter
So basically, you've got a PS1 in a Wii =]
All the problems ive stated are easy for the Hackers to solve, theres no exploits needed, cos we've got all we need.
Extras
Extra 2 Ports! 4 players, no multitap needed =]