I've read that this can be done, but how do you do it? I have my US PSTwo now, and I'm not that familiar with the menu, but I think I read that there's some function that can be accessed in it's menu that lets you smooth over textures in Raycrisis, and maybe other PS1 games as well.
Its an option in the PS2 boot menu screen. Bootup without any disc, and I think you press the version button (I think its triangle). Under ps emulation options you can choose to smooth textures.