If you don't already have it, get daemon-tools.
Mount your iso.
Open epsxe. Set it to use the virtual drive as the cd-rom, and to read audio subchannels (or make the subchannel file, whichever). Set whatever you want to set other than the cd (gfx, sound...)
Close epsxe to save the settings.
Open epsxe. Choose to "Run CD-ROM".


If the game starts and works (on mine, the sound is screwy when played with epsxe, it works fine on my psx though), then copy it with Nero (source: the virtual drive, destination: your burner).

I just want to make sure, though. Is your psx modchipped?