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Thats right. It is confirmed that a funtional Nintendo 64 emulator is available for the PSP. It is the old project Daedalus ported over by StrmnNrmn. For more info go to http://www.dcemu.co.uk/vbulletin/showthread.php?t=23613
Speeds at the moment are only 25-30%, however a dynamic recompiler is yet to be made for this project, meaning there will be a dramatic speed increase in the future. It already looks promising, especially seeing SM64 totally playable without the dynarec, despite framerate being crap.