About PSX hacking... you could try to contact rveach... he knows a lot about PSX... he made some tools (one of them can compress PSX images even more than any current compressor as far as I know... I don't use it tho ^^U). I don't have his site address at hand... but I'm sure you can find it...
I've played Dragon Quest Monsters, but just for a few minutes... so I don't know much about it... but I'm sure I could help with a few things if I have enough time.