I'm only able to test with my C1000, as thats all I have as far as Zaurus go. But I am able to overclock it to 620MHz. Just about every game I throw at it at this overclock is fullspeed. A big help would be a page or post listing the various Zaurus' out there and their CPU specs.
The "Load Success" only means that the BIOS was loaded successfully, currently. To test if your ISO is valid, try testing it on a desktop...Windows psx emu such as PSXeven, PCSX, ePSXe, etc. Or on a Linux desktop there's PCSX I suppose. Knowing the BIN file or .Z/.table you have works on another emu pretty much lets me know it's an issue with psx4zaurus.
The CPU running at stock speed is usually a good way to test stability of a game, so that shouldn't be an issue. Overclocking the CPU will give A LOT more performance though. Games on my C1000 at stock 416MHz are slow, but fullspeed at 620MHz.