As alot of people know emulation of Ps2 and such could be very well improved my question is since its a program being ran through a OS doesnt that greatly effect the preformance ,what if it was its own operating system could that improve it ?
I don't think that making it's own operating system will help a lot. Basing it on Linux would make more sense as it can be distribued and drivers exist so no need to make new ;)
Just recompile the whole thing, no useless thing in the kernel and useless userspace. You put that in a livecd and make it so the OS boot and copy himself totally in ram so you can remove the bootable disk and put any PS2 disk in.