By default Read Retries are set at 0 for a very good reason.
Any read errors at all means the source cd is damaged.
Some people may even suggest to set Error Recovery to either Ignore or Replace instead of the default which is Abort.
Once again the Default is Abort for very good reasons.
PSX cds do not have any deliberate bad sectors, they only exist due to damage to the source cd.
Setting Read Retries to other than 0 will invariably mean that, if either of the other two Read Recovery options is selected, you will end up with an image that can not possibly contain the same data as the original should have.
This will lead to simple things like glitches in the videos or even more severe problems such as game crashing because data in the executable is not what it should be.
Once again, Goldenhawks CDRWin was originally created for the purpose of backing up PSX games and the defaults as installed are the correct settings.
One other usefull utility to use, once the .bin/.cue files are created, is CDMage, from
Code:
http://cdmage.orcon.net.nz/frames.html
.
This has a function with which you can scan .bin files for corruption.
Any corruption means a bad image.