Make sure you have these settings.
_______________________I.__STANDARD__SETTINGS_____________________________
1. After Installation, Click on the ''ePSXeCutor'' Icon on your Desktop
2. Right Click on the ''TK3Online'' Symbol and go to ''Quick Configure''
3. These plugins should be activated
4. Click on the plugin ''Pete's DX6 D3D Driver 1.67''
Your Config should look like this
5. DON'T ENABLE SOUND !!!
As I told you the ''No Sound 0.4'' plugin must be activated
And in Options it looks so
6. Config [ONLY] the Gamepad 1
Don't config the Gamepad 2 !!!
____________________________II.__Connection__________________________________
A big mistake is if 2 players have different ''Connection Settings''.
( LAN<->GOOD, GOOD<->Average, ... )
To Avoid this problem, both players should choose '' Good''.
________________________III.__Old__Alternative__Setting_________________________
Another Nice FAQ is this HERE
___________________________________________________________________________
All in all, this is just a suggestion. You can play with the settings to see which works better for you. But you must choose the video plugin Pete's DX6 D3D Driver 1.67 !!!
Maybe you should also close other unneccessary programs.
Read HERE