Dave's Quick and Dirty PS1 Import Guide
I find that PS1 mod chips are largely a waste of time and effort. The region protection on the PS1 really isn't that great, and you can get around it very easily with stuff that probably won't cost more than $10.
What you need...
For original Playstation models:
A Game Shark/Action Replay disc, or generic Action Replay clone cartridge (preferable)
Paper clip, or spring included with Action Replay cartridge
For PSOne:
A Game Shark/Action Replay disc
Electrical tape
Small piece of plastic (explained later)
Scissors
Step 1: The Lid Switch
This step is essential. If you don't make sure the lid switch stays pressed down, then the Playstation will know you are switching discs. Thus, it will check the region data on the game again. With the switch pressed down, it never knows that you've changed games.
For original Playstation models...
The lid switch should be a circular button about 1 cm in diameter near the back right side of the disc tray. Check near the lid hinge. You're going to have to find some way to keep that pressed down. Tricky paper clip bending works in a pinch, but make sure the lid will still close fully so you don't get debris in the unit. This is the hardest part if you don't have good paperclip artwork skills. Consider using an Action Replay cartridge, as they often include a spring shaped specifically for this purpose.
For the PSOne...
The lid switch is much smaller this time. Look near the front right edge of the disc tray. The switch is just slightly larger than a grain of rice. Find a piece of stiff, pliable plastic. The kind used for packaging on things like controllers and memory cards usually works. Cut a piece roughly as wide as the lid switch, and about 1 or 2 cm long. Push one end straight into the lid switch, then bend the rest of it over flat against the disc tray. Use a small piece of electrical tape to hold it down.
Step 2: The Boot Disc
Just about any recent Game Shark or Action Replay will work fine. Don't spend more than $10, unless you really want one with a lot of features. Load the disc like normal, but make sure that it still loads and runs with the lid open the whole time - if it doesn't, check that you've rigged the lid switch properly. Once the main menu is loaded, the disc should stop spinning. If it doesn't, you may have to use a different boot disc, unless you want to risk swapping while the disc is spinning. If the disc is stopped, swap your import in there. Now just choose the appropriate "Start Game" option, and cross your fingers. If everything is in order, the game should load as expected.
If you are using an Action Replay cartridge...
Most of the Action Replay clones made in Japan are designed to make the disc stop spinning when the menu is loaded. They're very easy to use, but the included directions are typically of little assistance. Simply put any local game into your Playstation and turn it on. (By "local", I mean any game that you can run normally with no trickery like this.) You will be presented with the main menu, complete with various Action Replay functions. The disc should stop spinning after a few seconds. Stick in your import now, and find the appropriate "Start Game" option.
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(Don't ask if this works for running backups. Yes, it does. No, I'm not going to tell you how to make them, or where to get them.)