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I solved the problem. I had to go into Setting and select the Tools tab, then go into Savedata Manager and delete the SaveData but NOT the SaveStates for the game. Then I loaded up the SaveState...

Hey I'm playing PSP2:I on PPSSPP version 1.1.1 and am at level 49 and about to start chapter 9 of episode 1 story mode. The game played and saved perfectly fine up until level 41 and around chapter...