dont use ePSXe 1.6.0, you're going to encounter a crapload of problems. plus, you can just copy over your 1.6.0 plugins and such to ePSXe 1.5.2, there is no hassle whatsoever. it's still available for download at the website too.
and ew, D3D sucks. use OpenGL at least, i'd definitely recommend OGL2 a try too. you can use my settings if you carefully read my guide, i notice you discovered how ATi cards dont do 4096x4096 textures

(it says it in my guide though...i guess no one reads that part

)
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Dedicated to mediocrity and repetition since 1994.