So If I understand correctly, we can submit runs on the following systems: Saturn, PS1, PS2 (No FDS), PC, iOS, PSx (Emulator)

And PS2 (FDS) was banned.

So where does that leave the legality of running the PS3 (PSOne Classic) downloadable version of the game? If I submit a run on PS3 or PSP will it be accepted or do i need to play on my disk version for a legal run?

All runners should be equal for camparing runs so we decided that faster versions than the original itself form back in the day should not be allowed to keep it easy. So if anything speeds the game up its not allowed (such as FDS )

I personally dont know about the PS3 thing so i cannot say if its faster than the old original, sry x:

I think PC is a normal version that got released back in the back? Think it should be allowed since its no "fake" boost like faster disc speed for ps2 would be since this is not a ps2 game.

alright..i would say that we wait until you did that and then we can discuss the difference and see if it includes more differences :)

N-Gage is also a version, but I heard it contains less levels, so It might have to be a separate category.

So, if I run the game on a PS2 using SDS since I don't have a PS1, does it would be allowed??

Yes it would be allowed; only PS2 (FDS) is banned so, have at you. Please do note your loading times for me, until I get a chance to test them myself.