I bet some kind of High Level Emulation (HLE) like you describe is possible, but its probably encrypted up the wazoo and would be very difficult to pull off. I remember asking a simmilar thing on this board back in 2001 (when I was a previous screen name) about the possibility of emulating Xbox through HLE (I mean Xbox is just a Pentium III 700 with an Audigy ZX sound card and an Nvidia Geforce 3 Chipset after all), yet, that isn't emulated HLE or otherwise very well today is it?