I just found a work around for using save states with ff8 and mdecs (and perhaps other games that exhibit the same grey screening problem, I wouldn't know, it only happens to me in ff8). Previously suggested was loading from a real save in the game instead of saved states. Well I just discovered that if I do a load from a real save with sio irq enabled, then load my saved state, it fixes the mdecs. If they glitch back then all I need to do is save state, reset, load a regular saved game any anywhere, then reload the saved state. I hope this helps someone.