I figured it was a CDR problem as posted above... so I ripped the whole game to ISO and played it off my hard disk.
but when I get a license or exit the license test screen for that matter... the whole game just stops.
here is my config-
try to use other cd rom pluggins...... Petes cd pluggin work well with my computer...... or that problem could be tell tale signs of a bad disk.... check for smears or scratches..... epsxe is kind of sensitive to them, more so than a real psx......
if you try pete's cd plug then you may need to download "force aspi" An aspi layer is required for pete's and some other plugs. but win 2K doesn't have one for some reason. Get it from www.psxemu.com
Or you could use PEC to cheat and get yourself the licences you should rightfully have.