In general, games work better if they are converted to ISO. Especially the games with a large number of files and the ones with files larger than 4GB will work on FAT32 without having to cache the big files to the internal hdd.
Just make sure that you use PS3 ISO Tools 2.2 with the latest makeps3iso.exe and extractps3iso.exe included in Iris Manager 3.0+
The previous versions of makeps3iso.exe and Cobra's genPS3ISO 2.5 have a bug building the ISO of certain games.
99,9% of the ISOs will be built perfectly with these tools, but the 0,1% could fail at some point in the game due the bug.
The issue was fixed in Iris Manager 3.0 and the recent updates of its forks IRISMAN and GSM.
Folder 2 ISO
Use rudi rastelli PS2 ISO tools v2.2 and inside it always choose makeps3iso (never genps3iso)
But there is a problem in this version, im just going to give you a link, read posts 19, 21, 22, and 23 where aldo and rudi was talking with each other
What you need to do is to download this: (any one file of below)
Extract the contents of file PC_ps3iso_utilities_with_src_v1.9.zip and replace the .exe inside rudi rastelli PS2 ISO tools v2.2
This version of makeps3iso have a "bugfix" that affected a few games... and after this fix nobody have reported any other bug, so at this point it can be labeled as "final version"
Also, makeps3iso is the only full open source ISO tool for PS3... just if you had some doubt which one to choose, this tool can be updated if at some point someone report a bug (but at this point doesnt seems to have bugs, sooo not probable because not needed)
Use irisman, this one was easy to answer :)
Irisman is the only backup manager that uses internally the same source code of makeps3iso
So what you said is right @umart666 the method you are using to create a PS3 ISO should be 100% compatible with the PS3 game library, but try it in PC the resulting ISO should be the same if you use makeps3iso.exe
Also, this ISOs generated by makeps3iso can be "burned" in a BD-R (in the latest cobra versions there are patches that allows to load PS3 backups from burned optical discs)
The ISOs generated by genps3iso are going to work in lets say... 99% of the times
This is because the ISO format generated by genps3iso is not compatible with a few games, are very few so you are going to find people telling you that genps3iso is 100% relliable... but this is "based in his experience" because they have not "hitted" with this few incompatible games
Also, the ISOs generated by genps3iso v2.5 are not compatibles with the loading method from an optical BD-R disc. If you burn this ISOs to a disc is not going to work
As far i remember, this was caused by some change that happened in the last versions of genps3iso... but in older versions of genps3iso works
Anyway... why worry about genps3iso problems ?... just forget about it, makeps3iso is better :)