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!
ZodTTD