Right, what you want is a file structure something like this
ppsspp>memstick>psp>GAME
>PPSSPP_STATE
>SAVEDATA
The DLC goes into the GAME folder. PPSSPP will create the savedata and PPSSPP_STATE folder on it's own however you need to create the game folder your self.
As the above looks completely different than how I typed it after posting it, GAME, PPSSPP_STATE, and SAVEDATA should all be in the psp folder.
ppsspp>memstick>psp>GAME
>PPSSPP_STATE
>SAVEDATA
The DLC goes into the GAME folder. PPSSPP will create the savedata and PPSSPP_STATE folder on it's own however you need to create the game folder your self.
As the above looks completely different than how I typed it after posting it, GAME, PPSSPP_STATE, and SAVEDATA should all be in the psp folder.

