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i use handbrake all the time to rip my movies. I just leave the settings default and the movies work fine on my ipad.
This video shows how to play psx games on your iPad with psx4all with out the need to use the x2 button
YouTube - iPad - How to play PSX games...
Sweet. Still waiting for the iPad to be released in new Zealand so i can buy the connection kit.
You can now run psx games with psx4all.
Personly I would wait to os4