psx troubles on a 3.40 OE-C psp

I tried to play my new naruto shinobi no sato no jintori kassen game .got it has the eboot and the keys its also in the game folder with a 1.50 kernal what am I doing wrong. show me your recovery settings to compare.

 

try putting it in the game folder and what firmware are u using is it a oe

 

custom icons made my psx games not work which is fixed as long as I don't change the crappy icons sony gave which sucks because I loved my other icons.