Yes. I have created backups of games that I own with it. Kingdom Hearts 1 and 2, Final Fantasy X, X-2, XII, Grandia II. I have also used DVD Decryptor. But I think that program is no longer available. And if you install IMGBurn on a computer that has DVD Decryptor installed, it will say "IMGBurn is designed to replace DVD Decryptor, do you want to uninstall it?" I choose no, since I wanted both.
No, I played them on a PS2 Emulator on my PC. In order to play games without a mod chip on your PS2, you need to do the Swap Disc method. Here is some basic info on it. http://www.swapmagic3.com/