[Headly]

I have a magic 3.5, same as your 3.0 just with a wire set. I have never had a problem with any CD based game and I also used TDK CD-R. So lets just check a couple things. First off you can't usually play a PS1 game and then switch to a PS2 game without turning off the machine to reset it. This is as they state in their instructions I have noticed that occasionally you can switch back and forth but not always. Also you are loading the PS2 games with a single tap of the reset button, right? Not holding reset until the eject light comes on like your PS1 games.