PCSX2 is a PlayStation 2 emulator for Windows and Linux, started by the same team that brought you PCSX (a Sony PlayStation 1 emulator). Currently, it can emulate thousands of games at full speed
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Works like a charm with AMD's six-core processor and hd5850. Overclocked to 4+GHz and never encountered even a small lag.
Works really well but you need a good CPU. Dual core at least is a must
This project is moved to http://code.google.com/p/pcsx2.