Seems ZodTTD will have a public version of his Playstation 1 emulator for iPhone soon.

Here is what he wrote on his page:

Hi everyone!

Just a quick update to let everyone know psx4iphone will soon be getting an update to it’s beta. The big news:

Final Fantasy 7 is now working, along with many more titles!

I will be putting out the new beta shortly to those in the Beta Testers Club. A public version is coming, hold tight.

Thanks for the support!