I remember when it happened for me.
I woke up as Jill (after Carlos) and went to the park.
I forgot the lockpick and went back to get it, got it and opened the door... it froze.
Loaded it up again, this time remembering the lockpick it still froze.
Maybe that's your problem. You might have to start again with the JAP fix on 3.40 OE, and remember to go through the door first time with the lockpick, open the door and continue. In my experience attempting to go throught the second time fails and lock it like that for some reason.
Also you'd wanna use PSX2PSP to convert to EBOOT's. Works better

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