Misadventures of Tron Bonne on ePSXe 1.7.0 - stuck

I am stuck in the first level itself. After you destroy the giant blue reaverbot, when you come to what seems to be the entrance to the ruins, the game blacks out as if going into a cutscene and doesn't continue.
Here's my graphic setup: http://img715.imageshack.us/f/13473713.png/