I'm playing this on Picodrive PSP and it seemed just fine up until I hit the end of the Queens Hospital part
*HUGE SPOILERS AHEAD*
*YOU HAVE BEEN WARNED* After identifying the chief's corpse, the chinese dude will come out and make his speech. It works fine up until Random tells Gillian he won't be able to collect on that debt he owes. Then Gillian says 'Don't worry-' and the CD LED stops blinking. The game seems to freeze, except Random is still blinking. I've tried enabling/disabling Better Sync, Vsync, Scale/Rot effects, etc, but nothing seems to work. My snatcher folder has 01.cso 02-22.mp3
--- Know it. Love it. Have no clue what 'it' refers to.