Well, just so anyone can find the time to hack away at this wonderful game, it's a problem with the game's engine, as zero35 mentioned.
The game engine is multithreaded, and it seems to have a dedicated thread for I/O and graphics drawing. There is a synchronization issue with the engine that kills the game once the I/O thread is reading data at rates that are out of their normal ranges.
I believe that the solution here would be to identify where the problem occurs at, before injecting a jump (in the I/O thread) to a function that forces synchronization with the graphics thread.
I have not been able to do any of that, since I've been too busy with my other aspects of life and I simply lack the skills to do this in a short period of time.
@zero35: I'm sorry, but I don't think that I can do this, since I don't have the necessary skills to debug this game. It's not a small game since it's got about 5 threads running, and there is no debug information.
Unmodified SCPH-77006 with SM 3.6
SCPH-39006 with M-chip modchip, SCPH-10281 NA and refurb Seagate 80GB HDD
SCPH-10000 v1.00 with SCPH-10190 PCMCIA NA and SCPH-20400 HDD unit