Okay, now that I think about it, it really makes no sense to have two different screen-modes with one display... :) But the lines are there. I encountered the same problem when I tried to load isos which where labeled "US", but no problem with the "EUR"-version or the original UM...
Wow, awesome!
Loved the original, and I love this one even more :)
Only problem:
I got several vertical green lines when viewing the demo. The rest seems to be fine. Perhaps a problem of my PAL-PSP? Its a PSP1004 with downgraded 1.5 fw.