I know this is an old thread, but I was able to fix this same issue by changing a DPI scaling setting.
I'm running Windows 10, first of all. My fix was to right click on "epsxe.exe," click "Properties," select the "Compatibility" tab, click "Change High DPI Settings," and finally check the box next to "Override High DPI Scaling Behavior" with "Application" selected in the dropdown menu.
For me, this fixed the issue with the image being zoomed in and cropped, as LordMonkus suggested. Hope this helps.