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However, graphically glitchy, tricky to get set up, and prone to horrible slow down.
That acutally sums up my experience with PCSX2 also. We got one of the newer beta versions from Emuasylum that was much more painless setting up than the offical stable release, which crashed out like a bastard whenever you tried to play any game.
Stuff does work from disc, 2D stuff seems to be better than 3D, we got Raiden 3 running with no problems but other stuff was as slow as hell with framerates all over the place.
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Can you flash the bios?
Sort of, look into something like
Free MC Boot which adds homebrew capabilities to Fat PS2s.