Instructions
Check to make sure that your PS3 is backward compatible with PS2 games. Models released with a 20GB or 60GB hard drive are compatible, as are 80GB models with the model number CECHE01. Slim model PS3s are not compatible with PS2 games.
Power on the PS3 console. Navigate on the cross media bar to ̶0;Game,̶1; and scroll up to highlight ̶0;Memory Card Utility (PS/PS2).̶1; Press ̶0;X.̶1;
Select ̶0;Create New Internal Memory Card,̶1; and press ̶0;X.̶1; Highlight ̶0;Internal Memory Card (PS2),̶1; and press ̶0;X.̶1; The memory card will take up to 8MB of space on your PS3. Name the card, and select ̶0;OK.̶1;
Return to the cross media bar and scroll to the ̶0;Settings̶1; heading. Scroll down to ̶0;Game Settings,̶1; and press ̶0;X.̶1;
Select ̶0;PS/PS2 Upscaler,̶1; and set it to ̶0;Normal̶1; if you're playing on a wide-screen HD television or to ̶0;Full Screen̶1; if you're playing on a full-screen HD television.
Select ̶0;PS/PS2 Smoothing,̶1; and set it to ̶0;On.̶1; This will smooth out textures present in PS2 games, allowing for slightly better graphics to be displayed.
Insert a PS2 game disc into the console. Start the game from the ̶0;Game̶1; section of the cross media bar. Press ̶0;X̶1; to begin the PS2 game on the configured PS3.