I can only think of a couple of reasons why it would be failing, the first that comes to mind, is that if its a PAL version, you will need a European bios file.
scph7502 (EUR) as opposed to the usual scph1001 (USA).
Also, in System settings, you have the country setting, you may need to change that to Europe.
The only other reason I can think of, is maybe you ripped the image wrong?
Try these instructions step by step:
To rip an ISO image from your LEGAL copy of your favorite playstation one game, follow these instructions, originally written by Hazed, over at ifans.com:
First of all, download the free version of Alcohol (52%) from: http://www.free-downloads.net/programs/ ... ee_Edition
(Click the Download button at the TOP RIGHT)
Once you have installed that, follow these simple steps:
Put your original PSX game cd into your cd/dvd drive
Open Alcohol 52% and click "Image Making Wizard" from the list on the left
Tick the box that says "Read Sub-Channel Data from current disc"
From the Datatype drop-down list, select "Play Station"
In the Image Name box, enter the name of the game. This will be the name of your ISO file
From the drop-down list on the right, choose "CloneCD Image File"
Finally, choose a place to save the ISO file in the folder selector, and click Start
Follow these steps, and you should have your game running in no time.
I personally have ripped FFVIII and have it running on my XPlay, and it's running perfectly.