No. You just need the bubbles. Don't install. If you install, you lose the bubble and have to download the game again. They don't have to be installed on the PS3. I just copied over Final Fantasy IX. I have the bubble on my PS3, but it's not installed.
Hold the PS Button and press Start.
You can speed it up somewhat, but still not totally ideal.
ummmmmm who was it that said you couldn't assign controls? You can. Touch the pad until you get options for controls, memory card, reset games, and other settings.
Others include screen mode which has original, normal, zoom, and full.
There is bilinear filtering and disc load with normal and fast.