The most reliable and efficient method for converting PS3 ISOs or folder games into installable PKGs is using the CFW2OFW Helper tool
For those who want absolute control (and smaller file sizes), Sony’s official dev tool orbis-pub-gen (leaked) is the "better" method—if you know what you’re doing. how to convert iso to pkg ps3 better
Used to extract ISO files back into folder format if necessary. CFW2OFW Helper: The most reliable and efficient method for converting
You can replace ICON0.PNG in the source folder before building to give your XMB a custom look. how to convert iso to pkg ps3 better