Is it the latest version from:
http://repo.openpandora.org/?page=detail&app=package.gpsp.notaz
?
If it's never worked, first thing to try would be redownloading it in case the one you have is corrupt.
If that doesn't change things, and you have a working GBA Bios file correctly placed in gPsp's appdata folder, it might help someone more technical if you open your /tmp/pndrun_gpsp.out file it's creating, copy the text and post it here (between spoiler tags is best).
The file says "=======================================================================================
PND : /media/SD1ATM/pandora/apps/gpSP-pnd-0.9-2Xb-u8a.pnd
PND_FSTYPE : Squashfs
APPDATADIR : /media/SD1ATM/pandora/appdata/gpsp
APPDD_FSTYPE : vfat
PND_CPUSPEED : <unset>
EXENAME : ../../../usr/bin/links
ARGUMENTS : -g -mode 800x480 readme.txt
=======================================================================================
[ START ]--- Mount the PND ----------
mkdir: cannot create directory `/mnt/pnd/gpsp': File exists
mkdir: cannot create directory `/mnt/utmp/gpsp': File exists
Found a loop (/dev/loop0), using it
losetup: /dev/loop0: device is busy
Mounting : mount -t squashfs -o ro "/dev/loop0" "/mnt/utmp/gpsp"
mount: mount point /mnt/utmp/gpsp is a symbolic link to nowhere
WARNING : mount faild, re-tring
mount: mount point /mnt/utmp/gpsp is a symbolic link to nowhere
ERROR The PND File-system is not mounted !
+++++++
Loopback devices :
/dev/loop0: [b301]:36 (/media/SD1ATM/pandora/apps/gpSP-pnd-0.9-2Xb-u8a.pnd)
Are mounted on :
For these Union :
ERROR: The Union File-system is not mounted !
+++++++
Loopback devices :
/dev/loop0: [b301]:36 (/media/SD1ATM/pandora/apps/gpSP-pnd-0.9-2Xb-u8a.pnd)
Are mounted on :
For these Union :
[ FAILED]--- Mount the PND ----------
=======================================================================================
Return code is : 6"