click on CDRom under the config menu in epsxe. near the bottom of the window should be 3 boxes. To play GT2 you need to check the first and third box("enable accurate cdrom timing" and "disable real time cdrom status")
For GPU plugin try Lewpy's(if you have a voodoo card) or Pete's D3D.
For sound try the epsxe core SPU.
some other plugins may work better for you, but those work best for me.
thanx for the help, ive got mine running now, i did it by un ticking all of the options in cdrom tab. strange but true. does any one know how to get the resolutions up and improve the background textures?