I can do that later. I did some testing now. When playing with a real bios - no matter whether 1001 or 7502 - it crashes when the game goes into battle. This happens no matter which graphics plugin I tried: built_in, peops or pcsxsomething. In some cases, it "just" hangs while trying to load the battle screen: The game gets stuck in the "zoom-in" part and hangs, repeating a few seconds of the battle music over and over. At that point, the emulator still runs so I can go to the emu menu and reset stuff. In other cases, it flat out crashes back to XFCE. The /tmp/pnd_out... file contains a bunch of lines on the form "NI number number number", mixed with two or three "branch at..." or something like that, and ending with a "Compile at bogus adress ######" and then the cleanup bits follow.
I also tried running with HLE, and when I do that, the game does not recognize its save files - according to the pnd_out, the memcard files are loaded, but when trying to load a saved game, it just shows that there is no game data on the memory card. When running with the real bios, that problem does not occur (the save files are saved with 7502, if that matters). In this case I get no NI or anything, but then again, I never get into a battle screen (since it does not recognize the save file, I'd have to replay about an hour of gameplay in order to get to the first possibility of battle).
It is the PAL version of Grandia, if that matters.
I can do a more systematic run-through later, and collect pnd_out... files for the different combinations of bios and plugins. I did try the config changes suggested above, but got nothing that worked - If anything, my limited experiments indicates that it increases the chance of flat-out crashing to desktop.
Totally unrelated: Klumpen, are you by any chance swedish? The name seems to somehow suggest that...