Green borders in FF VII

I'm playing Final Fantasy VII with ePSXe 1.70 on my Windows 7 PC. I'm seeing green dashed borders around objects (mostly backgrounds) along with another dashed lines on battle messages. I tried fiddling with the in-game GPU configuration (the one you bring up by pressing Delete) so I can find the best configuration that will clear the lines immediately, but so far nothing clears those dashed lines yet. My video plugin settings is as follows:

Green borders in FF VII