Hey man,Welcome to NGEMU.
Our computer specs are almost same ecxept that I have celeron 500 and windows ME.
About PE-2 currently it works only on bleem and fpse(doesnt work in epsxe).Sound quality in bleem is very bad and also it hangs a lot.As far as fpse goes it will be slower on your machine.For best configurations I would suggest following things---
1.Graphics Plugin-Pete's 1.53 d3d gpu plugin(keep setting at fast and may be 640X480 resolution,if you go higher speed will be really slow).If you want to achieve better speed you may try segu's d3d plugin but it will show some glitches.
2.Sound plugins--Try different ones.Pete's direct sound,andy's and iori's are three you may want to try.
3.Cd plugin--I use petes.
4.Bios--scph1001.bin
Supposedly newer version of adripsx will also run PE-2.Lets wait and watch.