Yeah, PAL PS1 has an extra line compared to normal 50Hz 288p signal (314 instead of 313). This causes problems on several displays because the excess lines (when line-multiplied) is not tolerated. Some Sony TVs will not except this (W series from a few years back especially).
You can try the Panasonic hack, under Compatibility in the menu, but I think it won’t help on a Sony (doesn’t help on all Panasonics even).
junkerhq.net/xrgb/index.php?title=OSSC#Compatibility
Otherwise, I’m afraid you’re pretty screwed. You could try 60Hz mode if you have a modded PS1 (requires NTSC discs or ODE though).