I'm curious, though, that with your setup you aren't using Pete's OGL2 plugin, jonc2006. If you have a videocard and system that will support it well, it will usually run better than the plugins that are suitable for lower spec systems. In fact, even with an ATI 9700 or 9800, it's the only ePSXe plugin that works well for me in Linux; the others have too many problems; most notably not going full screen properly.
And I have to say - glitches that are common in Final Fantasy VII? Not in pSX, mate!