Yours could be a completely unrealated problem but here goes.
On my VGS 1.41, the program loads and asks you to insert a psx disc, even if there is one already in there. If you insert or eject a cd into the drive while VGS is running, the program hangs. I found a work around that might work for you and it might not (you didn't give us a lot of detail). I run a program called CVGS Tester.exe (located in your installation directory) when I want to play VGS. This seems to fix the problem (but it becomes annoying). You have to do this before playing VGS on a fresh boot. If you've run VGS Tester, Run VGS, quit VGs, and then you want to run VGS a second time, you do not have to run CVGS Tester again.
Really hope this helps but its not likely to.