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Well, I'll try to refrain from bashing on Vista... LOL.
You might want to check your folder permissions on the pSX folder (and all subfolders). Check to make sure that the folder containing pSX, and all subfolders, don't have read-only access set in the properties.
Also, you may want to check the actual security settings for the same folders, and make sure that your user account doesn't have any restrictions on what it can do in those folders. You'll most likely need administrative access to view/change these settings.
Lastly... the main thing you need to remember. When creating a memory card and formatting it in the BIOS, be sure that you restart the emulator (not Reset, but actually close and start up pSX again) before you actually try to use the memory card.
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