Originally Posted by underball
No, it doesn't.
I just updated to 02.07.05. The game shows as a PS2 disc in the XMMB game column. Pressing X does nothing. Pressing Triangle brings up the pop-up menu. there is an option to Load, but clicking it does nothing. I updated from a fully working 02.07.04. Also - the option for PS1_netemu doesn't even show up.
If I go and load the PS1_emu.self through file manager, it works fine.
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Same thing happens with me.