A quick rundown for anyone who cares about this who doesn't know already. The Lunar series are from the fine folk at GameArts who also brought us the Grandia games, if you like those. Lunar's game systems aren't as sophisticated as Grandia's, but the tradeoff is a much more traditionally fantastic world. Lunar is a story about heroes vs. villains, and it's very happy about it.
Was this game from the sega saturn?
SEGA CD game, remastered for the Saturn and that remaster then got ported to the PSX.
That's not quite accurate. The PSX versions are full remakes from the original Sega CD games, with notable story differences that some megafans fight to the death over. The original Lunar (and not Lunar 2) was then remade again for the PSP, although afaik that version is much more similar to the PSX version.
The general consensus (again, afaik) is 'not the Sega CD versions'. All versions except the PSP Lunar 1 are subject to Working Designs localization, for better and for worse.
It... seems like this remaster is retranslating and revoicing the games too. Interesting.
Edit: Where's Vanguard Bandits Remastered, you cowards!?