PSX2PSP can combine both discs into a single EBOOT so you can swap discs without restarting. Check the "Multi-Disc" box, add both disc images, and convert. The resulting EBOOT will prompt a disc swap after finishing Disc 1.
The atmospheric lighting remains intact. The flickering lights of the Raccoon City Police Department and the dark corridors of the sewers still hold up, providing that claustrophobic feeling essential to the genre. psp resident evil 2 eboot install