the whole freezing thing on the namco screen, that happened to me too. it just takes forever. if u wait long enough, the game will work but thats a pain so wat i did was i just made a new cso file. for some reason the cso file one i had that was freezing was smaller then it shoulda been by a few megs. i think i probably did something wrong in UMDGEN so yeah i just redid the whole thing and it worked.
if u do it right it should be about 785 megs. just make sure u apply the ppf tekken patch that was uploaded recently and delete the system update stuff, and then apply the bin o as the source or watever along with the bin 1 and then use CiSO_Converter_v1.00_GUI_v0.65_For_PSP and compress it with the 9 mode or whatever. it should work just fine after that. game friggin rocks. and the standard d pad isnt too hard to use for moves either. i was doing uppercuts with jin and kazuya just fine, it just hurts ur thumb a little after a while. lol