I couldn't find why the path you have for ePSXe is wrong.
First i thought that the problem is the spacing in the path but it turned out that is not the problem.
I suggest that you transfer ePSXe to some other directory (eg. i have ePSXe in C:\Program Files\ePSXe and it is all working all right).
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C2D E8400 3.00 Ghz | EP45-DS3 | HD4850 512MB | 4GB DDR2 800 | 640 + 250 GB HDD
SyncMaster 2233BW 22" | Logitech G5 | Logitech G15 | Windows 7 x64