You have a custom firmware that will allow you to convert playstation games into eboots. When you have these eboots, all you gotta do is copy them to your 'game' folder and it will boot up. No emulator needed.
As for the resident evil question: I haven't tried either of them, but I have heard that everyone's RE2 crashes/freezes when you enter the police station. I haven't heard anything bad about RE3...yet