Tekken 3 works perfectly for me on 4.03. I have nothing selected apart from framelimiter in the video menu and nothing selected in the audio section (although with sync it still works/no better or worse than without).
One issue i am having is that when i get to the final scene with any one of the characters, at the end of the sequence the screen will turn blank, and then nothing happens. Pressing start or any of the buttons does nothing. I have to interupt the final scene and the announcment part at the very end to continue playing. Annoying as hell since this is pretty much perfect otherwise.