An ISO is an image file of any media content. It can be a DVD, CD or in this case a UMD. It is the entire contents of the media but in one file and is an agreed standard.
The homebrew loaders take this UMD iso image off the memorystick and make the PSP think the disk is in the drive. It has numerous advantages which is morally wrong but often the way. Load times are considerably better and as a result of the UMD drive being idle during the whole process of gameplay, the battery life of the PSP is increased by up to 40% from what I have read.
It is however, completely illegal and as a result no links to these software loaders or iso image links can be posted or I will ban the individual with no questions asked.
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"Children are smarter than any of us. How do I know that? I don't know one child with a full time job and children." - Bill Hicks.
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