Unless it has changed within the last 3 years since I've checked, its legal own a emulator, if the emulator requires a bios, you must have a the console, initially you had to take the bios with some techy crap, but now they're availible, as you have a working emulator for the PS, I assume you do have the bios (legally I hope) for the roms its legal to own one that you don't have for 24 hours, after that you need to remove it, if you own the game, you're ahead to go a play it when you like.
As for homebrew, check out some emulation forums, some will offer usefull plugins, like one for the Nintendo 64 emulators that dumps all of the game textures into a folder and can load custom ones into it. I've had Zelda Ocarina of Time running with Wind Waker style hi-res textures.
Quote: "like what Microsoft did for the Xbox 360, of course you coudldn't actually put the game in any old 360"
I dunno, but from the look of things over at the Torque website, Microsoft have been developing something for Windows and 360, as the torque dudes seem to be releasing a version for that something, and seem to be promising 360 development, this time with out talking about one of those development kits.
