I'd up to 3.40 just to be on top of things.
To play ps1 games, you'll need popstation. (Google icetea.)
But first you'll have to rip an iso/img/bin file (Either of the 3) with an iso ripper. I use MagicISO, but there are free alternatives.
In the end you should have a fairly large EBOOT.PBP. Put that in a folder titled with the game name, or id. Put the folder in PSP/GAME and you're set.
And no you're not a noob, everyone has questions.
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