You can change discs on the FF games because they save right after the end of the disc, meaning you can pick up on the next disc where you left off.
In order to do this, you just need to alter the eboot files to have the same game id as the first disc, and you're free to continue the game. That should be an easy fix for what you're playing now.
In the future, for other games that you can't save after the end of the disc, use ImpalerPSX. You can use this program to create a single eboot file, and you can use this for FF8 too.
About popsloader, you should really get it. FF8 runs better on some firmwares than others, as do most games for playstation.
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