someone should sticky a post about emulators, this comes up like once a week, and it usually ends up with ten people recommending smartgear.
Larry Bank actually just got a TP2 and is doing more development so I think we'll see even more progress (SNES emulation).
check out this post for more info:
http://forum.ppcgeeks.com/showthread.php?p=1402678
the forum user BitBank is larry, apparently he follows threads here.