For those with custom firmware on their PSP the DaedalusX64 folder goes in the the PSP/Game folder of the memory card. Your Nintendo 64 ROMs go the either the Roms folder for in a N64 folder in the root of the memory card.

Recommended Settings and Notes:

Texture Update Check: Disabled
(Needed by some games like MarioKart.)

FrameSkip: 2
(Just recommended for best overall speed)

Limit FrameRate: Yes
(As things get faster this gets more useful.)

Double Display Lists: Disabled
(Only needed by some game to fix shaking. GoldenEye, SouthPark Rally)

Dynamic Recompilation: Enabled
(Shouldn't be buggy and this is where most of the speed comes from.)

Dynamic Stack Optimisation: Enabled
(This works with Dynamic Recompilation for extra speed.)

Dynamic Loop Optimisation: Enabled
(This is a small speed-up, but does break some games. The one that worked in R13, but broke in R14.Can be turned off for compatibility)

High Level Emulation: Enabled
(This is a new speed-up that should be stable. Any crashes caused by this should be reported to Howard0su.)

Audio:
OFF - Fastest and Most Stable
Sync - Slowest, but also Stable
Async - Fast, but unstable (Use save states often.)

Controller: This comes from the ControllerConfigs folder. Chose which config you want here.