Here is the latest straight form the site:

After a quick test of the new Dreamemu release this morning, I have found that it has trippled (if not more) it’s compatibility. Preliminary ISO support has been added so that cames that used the cd/gd filesystem will function correctly.
Added New Items to compatibility list, added screenshots and I’ll be adding a “How to use ISOs with Dreamemu tutorial” later today or tomorrow.
Coming Soon: Place for an adapter to plug a PC mouse/keyboard into the Dreamcast.

-Cyber Plague