For all the people that want to know.
Before we begin,
this is the list of all the apps you can run with this, as well as Fanjita's favourites.
THIS DOES NOT WORK ON 2.01+, ONLY 2.0!
Note: The X drive is your PSP's drive (mine is G), it's commonly E. When you plug in your PSP, the drive that comes up is referred to in this guide as the X drive.
Download
here.

Step 1. Extract all the files from the "loader" folder into your root. Not MP_ROOT, the root drive. Make sure the psp, utils and the BIN files are in the root folder, AKA here:
X:/(extract here)

Step 2. Place all homebrew you want to run the same way as on a 1.5 PSP, so:
X:/PSP/GAME/NAMEOFHOMEBREW
X:/PSP/GAME/NAMEOFHOMEBREW%
And whatever other files needed to run it.
Replace the above letter X with your PSP drive letter.
Step 3: Get any custom background on your PSP.

Step 4: Go to your PHOTOs section and select the fanjita loader folder. There are two of them, a new version (0.9 as of now) and an older version, usually 0.3, that can run some older homebrew 0.9 has problems with. Example:
Now, if you did something wrong, the PSP will freeze. If not, you get a menu.
Step 5: Browse to the non-% folder of the homebrew you want and select it. Your homebrew will either run if it's supported or the loader will reset if it's not.
Step 6:To exit the loader, hold L+R+Start for a few seconds or turn off the PSP (hold switch in the up position for a few seconds).
The loader has LUA support too, so you can play LUA games too. The loadmenu.tga file located in the GAME folder is a background for the loader, and is not necessary, although it makes it look much nicer.
Screenshots (of PC) coming soon.
If anyone would be kind enough to take screenshots for the PSP, I'd appreciate it.