Update #2: You guessed it, SMS PSP v0.3 is now available with the following bug fixes: the triangle button now works for going back to the browser while in-game, and the SEGA GameGear games now work better as a few issues with them have been resolved.
Update: SMS PSP v0.2 has now been released, with the following changes and updates: added a ROM browser, ALL ROMs can be launched now, the HOME button works, there is a quick quit feature and full support for both .SMS (Sega Master System) and .GG (Game Gear) games,however, there is still no sound at the moment.
SMS PSP v0.1 has been released today, which is a SEGA Master System/GameGear Emulator for the PSP! Currently there is no sound, but nearly all games work at 60 fps including Alexx Kid in Miracle World, all the Sonics, Bubble, Black Belt, etc. Very cool PSP news!