If you go emulator, go with EPSXE. Played it a couple years ago with that and went really well.
Emuparadise has all the DLs or links that you need.
Epsxe is very outdated and full of hacks. The Beetle/Mednafen core for Retroarch is a much better solution (I can't go back to any other emulator after retroarch's timing optimizations - there's very little input lag compared to everything else I've played, and I've been using emulators for 18 years), the excellent CRT shaders are just the icing on the cake.
The problems with the PSX version of Blood Omen are inherent to the platform - namely, the excruciatingly frequent load times.
edit: here's the conundrum. This is how brilliant it looks running under Mednafen PSX/Retroarch (using the CRT-Royale shader and 3840x2160 resolution - make sure to click to see the full version):
It looks much better in person because JPG compression sucks, but you get the idea. Gameplay is also faster than the PC version. I couldn't manage to take screenshots of the PC version for some reason (tried FRAPS and screengrabbing with prntscrn, neither worked), but it looks a lot worse and the scrolling isn't smooth, plus as I said the game itself runs at a slower framerate.
Here's a screencap of the PC version (not mine), representative of how it looks.
It should be an easy choice, but the load times really make the PSX version very difficult to play.