* EP's own Arc The Lad III Files Are Corrupt *

Found HERE:

I downloaded Arc The Lad 3 DISC I:

http://www.emuparadise.me/Sony_Plays..._%5BU%5D/36519

And if you look at the "Arc.the.Lad.III-Disc.1.CUE" file it says:

FILE "Arc.the.Lad.Collection-Disc.3.img" BINARY
TRACK 1 MODE2/2352
INDEX 1 00:00:00

Which is way off, the word "collection" isn't even in the files.

I finally got it and the 1st disc working by renaming without periods. Including additional periods in the filename corrupts pSX's CDZ converter.

Trying to download the file from WUpload.com gives me:

The connection has timed out
The server at s50.wupload.com is taking too long to respond

The file is not necessarily "corrupt" it was simply written incorrectly. Cue files for non-audio type and single layer discs are hardly ever required.
This is the same upload that I used to convert it to PSP without issue and I did not need the cue.

You could have edited the cue file like this, but you figured it out.