Notaz shared the initial release of PicoDrive for PSP, a Sega CD and Genesis (Mega Drive) emulator. The author notes that most Genesis games are running full speed in this release. Certain Sega CD games will not run well but speed can be improved by enabling frameskip.
Download: PicoDrive For PSP [Right-click, Save As]
This is yet another Megadrive / Genesis emulator for PSP, but with Sega CD / Mega CD support. Although it has been originally written having ARM CPU based devices in mind, it has now been ported to PSP too, by replacing ARM specific parts with portable C code.
The base code originates from Dave's (fdave, finalburn) PicoDrive 0.30 for Pocket PC. The Sega/Mega CD code is roughly based on Stephane Dallongeville's Gens.
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