JPCSP do support ISO files, try putting the file in umdimages folder, and then 'Load UMD'.and it's the only PSP emulator that can run PSP games at the moment.
General Error: Loading of encrypted BOOT.BIN is not supported. It can only be cedrypted using a real PSP.
I doubt the PSP emulator will be able to run Birth By Sleep. And like the error says, the emulator cannot decrypt the encrypted Boot files. You'll need a Real PSP to play the game.
is it possible to play ISO files on a psp just out of interest
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