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This cool DEV news (from a few days back) slipped past us initially, as Loser has released an Installable PS2Dev Environment for Win32 (14.5MB) available for download from his page at InternalReality.com. To quote:
This is an installable PS2Dev Environment for Win32. This is all you need to start ps2dev on a windows machine! And in a nice easy to use installable format. Thanks to all those who helped make the toolchain and ps2sdk what it is today!

It contains the latest ps2dev compiler tools for EE, IOP and DVP built on the GCC v3.2.2 toolchain and patches, (no source code included). It also contains the most recent (direct from cvs) version of ps2sdk precompiled, (source can also be optionally installed). When installing, DO NOT install to a directory path that contains spaces!