It looks like NJ has updated his CPS-1 emulator already. The second alpha was released a little while ago. According to DCEmu the translated readme is as follows:
It corresponded to the game of QSOUND.
Dip switch inscription of the old game was corrected.
Japanese resource the file was added. Method of using is the same as NGEPSP.
QSOUND processing is light, is. To 22050Hz perhaps it is good. Sprite of the scroll surface does not draw with [panitsushiya]. The pattern where VRAM for sprite is not enough somehow. Next becomes beta, but you think that time is required for adjustment for a while.
If this version is still as good as the last the upcoming beta version should be killer.
Via DCEmu (Download)
Capcom CPS-1 Emulator for PSP
Capcom CPS-1 Emulator for PSP – Beta 2
DCEmu Interviews Exophase
PSP – Emulators and Downgraders
Sony Hates Us – PSP 3.0 Firmware