Not entirely sure on this one. I know that SMS can read CDFS and 'dummy' DVDs, but the 'Dummy' DVD's I've made for SMS don't play nice with uLaunchELF.
Heh... Don't think I've got any CDs to try this with either. Just blank DVDs. ^^;
One other option would be to just grab a random HDD and format it to use with uLaunchElf and other Homebrew. I've got a SONY HDD in my PS2, but a regular Maxtor or WD in my g/f's. She can't see her HDD in the PS2 browser, but it's picked up perfectly fine by every bit of homebrew we've thrown at it.
Using FTP to your PS2's HDD would likely be MUCH less headache-inducing.
One more thing I just thought of: USB Storage. THIS I could help test. I've not tried running the HDD version of SNEStation off of a USB drive, but it could work. Worst case, this could be a file transferring option if you're not able to use FTP with a HDD.
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