Thats rather interesting....... If you can play PS1 games on your V7 PAL ps2 that rules out the Magic 2 & Matrix 2....
Sounds like the chip has garbled the animation screen...Sort of like the (I beleive) Origa chip did......
I would like some more info on this if you can..... Where did you get it from? Where did they get the chip....etc......
I'm stumped...