As far as I know, CD based games Only need converting to DVD if you use the ESR Method
as the exploit tricks the PS's protection into thinking you inserted a DVD Movie (Hence VIDEO_TS,AUDIO_TS on ESR PATCHED Images)
USB should play CD images. You may need to convert them from CUE/BIN to ISO but not DVD
Also not all games can be converted to DVD anyway due to protection checks/skewed LBA
Also it's worth checking google for LISTS of games that work with USB drives.
Not all will.
The best compatibility for HDD is to use a PHAT PS2 with a Network Adapter and an internal IDE HDD. I have NEVER used USB for games on PS2, just for music and videos (SMS)
As far as I can remember, I do believe you need to name the games in a set way on USB... I Could be wrong. If other USB users can jump in here, go for it !!
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