1) Game-play in and of itself is fine. Intro FMV now has audio which was previously fixed with the new ATV register. The problem is when you die in-game. The death music is delayed by 3-4 seconds then starts. However, when the death music starts, the game-play resumes and the level music doesn't always play back. Sometimes- not always, if you hit start to pause, then unpause, the level music will start play no problem.
In it's original CD playback, when you die- the death music plays nearly right away, then the level music then resumes as it should from the beginning of the track. There's really no delay or interrupting of one track over the other as with the PSIO.
Game utilizes CDDA/ CU2. Seems like it may be possibly an internal timing issue???