I think it may be your CD sending you a warning that it is getting ready to go. I use my HP CDwriter w/ePSXe using Petes CD Plugin.
This allows my writer to run at 2x speed, the speed of a real PSX CD unit. Doing this has not harmed my writer at all. Last night I just burned two music CDs for my wife. The copying went off with out a hitch. That is why I don't think it is ePSXe that is causing damage, but rather that your CD is starting to go.
sincerely,
sx/amiga