I'm running 3.71M33-4 that allows multi-disc eboots for PSX games. I've used this guide to create a Metal Gear Solid eboot. The 3.71M33-4 Pops allows you to switch controllers and has a "switch disc" option that lets you swap discs. I can confirm that the 2nd disc of MGS works with this method:
http://forums.afterdawn.com/thread_view.cfm/653353
After I finish MGS, I plan on converting other multi-disc PSX games to single eboots. I'll post other results as I test.
Multi-disc eboot creation guide for PSP
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