1. ditch 1.7.0 it has a problems with multi disc games as in disc change is messed up that is fixed in 1.8.0 and 1.9.0, 1.6.0 it was fine anyway
2. No you can't use other pad plugins (not without messing) but do check that has all buttons mapped correctly in the analog/dual shock setup (digital only should be auto setup anyway)
3. yeah joy2keys is a good idea
P.S. this is a pad issue, you can also make sure the pad is in digital mode and not analog mode
If you want to try other pad plugins let me know I can guide you through the process of doing just that, but by default you can't change what ePSXe uses for control pads