I've used CDRwin to create a .bin image for gran turismo and I got the same result. The game crashes when I try to load car info to buy or race in arcade. The game has a scratch on it, but my friend was able to play it fine on his playstation. I have tried many different options in the emulator and have tried the built in win2000 plug in and pete's cd plugin.
Is the gran turismo crash something to do with the game, since it happens when running from cd or iso?
When you used Pete's CD plug did you use version 1.06 with the read retry count up to 10? If not, try it because read retry makes your CD drive try to reread scratched parts of a CD.
Also you could try remaking the ISO with the settings in the below pic.(Don't pay attention to the yellow circle with a 1 in it. Its supposed to be green.)
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