Can you add log, and add to VFS as path "/dev_bdvd/PS3_GAME/" and device path "$(GameDir)\", beacause I can see sys_fs error on screenshot. Try set that resolution in settings 1280x720 with aspect ratio 16:9, beacause emu may be bugged(like in Spelunky)
Please place the game's PS3_GAME folder in /dev_bdvd/ so that /dev_bdvd/PS3_GAME/USRDIR/data.sdat can be found. Make sure this path to data.sdat is correct, move it around some more otherwise.
The error "[E : PPU[1] Thread (CPUThread)[0x00a25064]]: sys_fs error: '/dev_bdvd/PS3_GAME/USRDIR/data.sdat' not found! flags: 0x00000001" which is repeated over and over again should be gone.