PCSX2 has released a patch tool called CSX2 utf8enc  that will convert your ISO to the correct format. The patch has already been verified by KOSKOS and has passed through their tests with various games. It aims to fix the corruption issues found in KOSKOS and can be applied with the included command-line tool.
In order to play UMD/ØS games on a PlayStation Portable system, which requires a Ministry of Internal Affairs (MIA) accredited software authentication scheme, you will need to obtain a "Gameboy Disc" DVD (patched with MFV2). The image is then patched to remove all the 4-byte markers in the file, effectively "hiding" the PSP's software ID. Some PSP games are signed with a way to get around this, but these are primarily unlicensed bootlegs.
Please note that piracy of games and bootleg software is a "seafaring" problem. This is a problem for everyone on board and, while we can all try to help, the help probably is not going to be of use for the folks that end up running into legal issues due to this whole thing. I know this very well, I am a pirate of games and software. In fact, that was pretty much the reason I wanted a PSP -- I didn't want to get caught by the cops, so I figured the best way off to avoid it was to stay away from the expectation of illicit games. Plus, the hardware and software of the PSP have a lot to do with the ease of cracking and piracy... d2c66b5586