Use UltraIso to convert your ccd images into .bin and then use Pocket Iso to compress them. Or better yet open your image in IsoBuster then extract the first track (usually the only track) as a raw data and then compress the resulting .bin with Pocket Iso. Works like a charm for me.
EDIT: Oh by the way, a lot of games I tried using this method either don't work (psp shuts off at the loading screen) or simply freeze early into the game or at the starting logos, however quite a few I have tried do work, so I think it's safe to assume it's the emulator and not my method. It may be that all of the games you tried simply aren't yet compatible.
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