If you know anything about Windows Mobile gaming you will have surely heard of FPSECE. This fantastic Playstation emulator keeps getting better and better week by week as the master programmers behind the software keep on tweaking.
Along with many graphical enhancements of late, the lead engineer (Schtruck) has now managed to implement two player action for any game that supports it. Using the CobaltController driver (available from XDA-Developers here) users can easily play against each other or together in co-op mode depending on the game title.
A great example is shown in this youtube video above created by Schtruck himself.
For more information visit the FPSECE website here.