Hi there Orxenon,
You're not selecting the .Iso at all in your screen shot.
You are just showing the location of the contents of PPSSPP not the game itself.
You need to browse to the location where your games are placed, best thing to do is create a new folder on the root of the device, called PSP Games, place your games in there, next browse to that folder, in the inbuilt browser of PPSSPP, open that folder to the games, and the game preview icon will show up in the main screen, ready for you to choose.
Hope that helps.
You're not selecting the .Iso at all in your screen shot.
You are just showing the location of the contents of PPSSPP not the game itself.
You need to browse to the location where your games are placed, best thing to do is create a new folder on the root of the device, called PSP Games, place your games in there, next browse to that folder, in the inbuilt browser of PPSSPP, open that folder to the games, and the game preview icon will show up in the main screen, ready for you to choose.
Hope that helps.

