According to pSX compatibility list:
Quote:
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Grandia SCUS_944.57: 1.11-1.12: :Hangs on 'Escape' command during battles, on some player skills/magic, during battles later in the game; use v1.10
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So you got two solutions:
-Get back to pSX 1.10
-Using another emulator (ePSXe, PSXeven,SSSPSX) with the P.E.Op.S. GPU plugin as you were using a "hardware acceleration free" emulator at the firt place.