I'm not quite sure where to post this since it's not my project and I have absolutely nothing to do with it. I am excited however because it looks likes it's finally happening. A user over at Assemblergames cybdyn has seemed to get some games up and running via IDE or SD ( think), which has been in development for quite a while now and I'm glad to hear after so long there's progress.
Another user, Ozone is also working on such a project.
GD-ROM emulation will allow full GDI rips (1:1 rips of Dreamcast games) to run on the Dreamcast.
Here is the thread discussion http://www.assemblergames.com/forums/sh ... oup/page23
Here are some videos http://www.youtube.com/user/9madsheep/videos
This could mean many, many great things. No needing to buy 99 minute discs or any discs at all, no more lasers wearing out, no more size limits, heavily modified games. Imagine Shenmue 1 undub, maybe even prototype games and such.
Theoretically you can even turn your Dreamcast until a sort of arcade machine that plays DC games and such.
Really cool and really exciting.