I've had a dig through the PSX RPG list on gamefaqs, searching for all cases of "&" or "and" - I think it might be Blaze & Blade. I've put a bid on eBay for it, but it'll take a week before I find out if it's the game I'm thinking of (let alone if I get the game!).

If you're interested in it, just keep in mind that it's nothing amazing when it comes to story and whatnot. The only reason you should really play this game is if you want to have some fun with your mates and you're sick of all the normal multiplayer games out there.

I think you can get up to four players. Might want to read the review on gamefaqs if you like.