... emulation is not illegal, and making your own disk images of ps1 games is increadably easy(Aka roms, for you piarate people) Shall i point you out to a guide (im under the assumption that this uses disk images and is infact not giving the games out themselves).
and this type of software is not of dubious legallity as this articalle states, look at the case of bleem vs sony (sure sony destroyed bleem by taking them to court (legal fees) but bleem won the court case) (not in depth here, but really not in the mood to look stuff up (http://en.wikipedia.org/wiki/Bleem!#Sony_lawsuit)
oh and might i say, ripping your own games and bios are not illegal, before someone metions it. (http://en.wikipedia.org/wiki/ROM_image)
id like to quote this from wikipedia while im here.
As computers and global computer networks continued to advance and emulator developers grew more skilled in their work, the length of time between the commercial release of a console and its successful emulation began to shrink. Fifth generation consoles such as the Nintendo 64, the Sony PlayStation and sixth generation handhelds, such as the Game Boy Advance, saw significant progress toward emulation during their production. This has led to a more concerted effort by console manufacturers to crack down on unofficial emulation. Both country specific copyright and patent law and international copyright law under the Berne Convention protect copying and reproducing of subject matter with copyright protection.[1]
Under United States law, obtaining a dumped copy of the original machine's BIOS is legal under the ruling Lewis Galoob Toys, Inc. v. Nintendo of America, Inc., 964 F.2d 965 (9th Cir. 1992) as fair use as long as the user obtained a legally purchased copy of the machine. However, several emulators for platforms such as Game Boy Advance are capable of running without a BIOS file, using high-level emulation to simulate BIOS subroutines at a slight cost in emulation accuracy.
http://en.wikipedia.org/wiki/Video_game_console_emulator#Legal_issues
its also stated that it is legal to create your own bios for use in emulation (but thats on a whole different articale on a whole different website which would take me alot of time to find..... so take my word for it, or prove me wrong)