Everyone knew it was just a matter of time, but very few people realized that the PSP would be emulating other systems so quickly. It seems that some industrious folks have already gotten a Game Boy Color emulator running, albeit with some hiccups.
The current version of the emulator, which is constantly receiving updates, doesn't support sound, has some slowdown issues, and can only be run on Japanese PSP's that have not been updated to the 1.50 firmware.
While this might not be the breakthrough that US gamers were hoping for, it does show that emulation is possible. We'll let you know when there's something to get excited about for US PSP owners.