FPSE - Playstation emulator. And yep, it makes the PS games touch screen compatible. You have the PS controls on the touch screen.
As for nice games that weren't available on your older p500:
Final Fantasy VII for Android
Asphalt 7 Heat
Beach Buggy Blitz
NBA Jam
Punch Hero
Dead Trigger
Dead Space
GTA Vice City
Babel Rising 3D
Heroes Call
And many more actually..
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SugarSync and DropBox Referrals
SugarSync (gives 5gb free on registration)
DropBox (gives 2gb free on registration)
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