ePSXe 1.7.0 has been released. You can download it in the files section.
Short changelog:
Multiple changes has been done in the Pad support.
The internal SPU plugin has been updated to the 1.7.0 version.
The iso support code has been rewritten.
The MDEC decoder has been rewritten.
A new version of the Pete's Software Plugin is included.
The XA/CDDA support has been worked in this new version.
Many things have been fixed in the cd-rom decoder and the core.