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Just a noob question, as I am new in the homebrew world, but what is popsloader?

Popsloader is a plugin for a built-in emulator, pops. POPs emulate PSX (aka PS-One) Games.

As the firmware gets newer and newer, the game save formats have been changed. Some games are only compatible to some firmware

Popsloader lets you choose what firmware of POPs you want. So more games are compatible.
 
Personally I wouldn't worry about setting up popsloader unless you find a game that is not compatible with the newer, built-in pops emulator.
 
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