Michigan, USAI'd be cool with allowing pauses in the 8+ hour races (Edit: Maybe do it GT5-style and allow timer pauses when the car's stopped in the pits?) and garage screen. I honestly want to go back and attempt this solo anyway, it'd be a good way of doing it IMO.
I've already done a 100% run on the modified version. Someone running it would have to burn a new disc (as you can't just patch an original CD-ROM), which a non-modified console wouldn't read, or use an emulator (which is what I did, I just didn't submit it).
Hybrids can be done with a Gameshark or equivalent though, so there needs to be a rule on that. Same with trading, it's too close to NG+ and is not allowed.
All Gold Licenses is already in the Miscellaneous section, so a standard All Licenses is just a worse version of that and thus pointless. Specials and Endurances are also miscellaneous categories. We'll leave the ILs that are already there (since, you know, they're there), but we're not going to add any new categories.
"Even if everyone ran the exact same emulator settings, the variations between PC builds would still cause differences in loading times." -me, literally in my first response to you. If there was a way to remove load times from the game entirely we might consider allowing emulators, but we can't so we won't. Locking this topic, as there's no need for further discussion on it.
Two different emulator versions, three different plugins, multiple configurations, and I could not get it to accurately recreate the loading times of an actual PS2 (though I do admit, I was impressed that 2.0.5 was pretty good about the Midfield frame lag). This is why emus are banned.
As for Arcade, we're going to keep it to a full-game run (the category has now been added). As Cyberscore has a MUCH more comprehensive database of ILs than we do, I suggest messaging the mods over there and seeing about getting individual class leaderboards added.
Tl;DR: official emulation isn't happening. End of. Arcade Mode most likely will.
The reason why emulators are banned is because none of them are 100% accurate to official hardware (not even Mednafen, an emulator known for its accuracy). Namely, loading times vary greatly, even between PC builds, and can give someone with a good computer a massive advantage over someone playing on an actual PS2. Even if everyone ran the exact same emulator settings, the variations between PC builds would still cause differences in loading times. The only way to make sure the playing field stays even is to ensure everyone uses official Sony hardware. PS2s and copies of GT2 can be had on eBay for around $60, so the barrier to entry is not particularly high. I personally enjoy practicing on ePSXe (being able to use my Xbox One controller is wonderful), but actual runs always have been and always will be done on console.
As for Arcade%, we're working on a rule set that defines a "new game" for the purposes of Arcade Mode, since the Super License is required to have all the tracks unlocked. Watch this space.
The run I submitted was on a combination JSRF/Sega GT disc installed on a softmodded console. Loading times will never be the exact same between consoles, and in a run as short as Chronicle Mode is I think using Combined Race Time would be the most fair (though I would suggest keeping RTA times on the leaderboard as well, like what a lot of PC games do with showing times with loads on their leaderboards even though it's not the actual ranked time).
EDIT: I've deleted my run for the time being. I fixed the DVD drive on my console, so now that I can run the game fairly I'll submit a run using the actual disc as soon as i can.
adeyblue posted a theoretical 100% run on YouTube. The end time was something like 76 hours, IIRC.
Scored a new PB tonight.
Tantalizingly close to WR. A couple minutes saved in an enduro, a couple minutes saved by not spinning out, a couple minutes saved by not making as many horrible menuing mistakes, RNG not screwing me over in East City (which is where over 30 of my resets came from, and where I lost 30 seconds even though I had done three races in earlier splits)... So many places to take back a little bit at a time; someone should be able to pull off a 25:30, honestly.
adeyblue - Yes, I did have to go back and run GT All-Stars 1 again to farm some credits. My run went to hell somewhere around the lotus one-makes and I had to spend a bunch more credits than I would have liked to make myself competitive. Very nice run :)
n1nj4ofshr3d - The only reason why I even considered allowing timer pausing was to make this category more accessible for people with limited time to run; it's still a single-segment run in the spirit of the rules, though not in the letter. That said, either allowing or disallowing it is fine by me.
We have a run. It's gonna be a bit, but I'll get a verification and highlights video together. Watch this space. But for now: 
My computer crashed (thankfully the run was paused), hence the timer not looking right. The video will show what I did, and the final time is correct to the hundredtg of a second.
I had a bad feeling that RNG was based off processor cycles, but number of frames isn't really any better. I'm assuming prize cars are given the same way where applicable, although it could be as simple as odd frame = car A and even frame = car B.
I'd be okay with saving/pausing/reloading as a "time penalty". Next run I do will use this method, and (unless someone beats me to it) I'll claim it as a WR for the purposes of having a baseline.
Another way to distinguish 1.2 from the other versions is in the championship entry screen for the GT300 cup, Grand Valley East is spelled correctly. 10/1.1 versions have it spelled "Bast".
Going PAL-only, I'm not so sure about. I know it's possible to find ROMs of the NTSC version online, but I'm not so sure about finding PAL discs (and I'm sure importing one is going to be stupid expensive). I'll do some research.
EDIT: PAL ROMs are easier to find than I thought. Seeing as how we're allowing emulators, should we just allow all versions?
Edit edit: I've revised the rule set in the OP.
Speaking of research, after looking at your method of dumping the UCD lineups, I had a thought: is it possible to dig through the disk and find out how the game picks tracks for the manufacturer races? If it's possible to RNG-manip the game to give something like Super Speedway or Rome Short every time, that would be a massive time save right there (on the order of an hour plus, probably).
I've received feedback, and two modifications were suggested:
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1 second time penalty is too short. This I agree with, but I'm not sure exactly what to make it. Maybe thirty seconds?
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Using any version of the game, not just 1.2. The only issue I have is the possibility of intentionally missing a couple events on a 1.2 disc to show 98.2% completion. Maybe judge this using both completion percentage and number of wins? They both show up on the completion screen. If this happens, I'd be happy to modify that rule.
This weekend I (nearly) completed a 100% run of GT2.These were the rules I ran under, but I would like to submit them to the community for debate so we can all agree on one set.
-Emulators: Emulator use is allowed, provided the game is run at its native framerate (ePSXe video plugins can auto-detect this) and the runner keeps the frame rate display up the entire time. No emulator features (save states, frame advancing, etc.) are allowed.
-Game discs: All versions of the game (NTSC 1.0, 1.1, 1.2, and PAL) are allowed. For versions of the game that contain the 98.2% glitch, 98.2% completion is sufficient.
-Completion: All races, including the event generator, must be completed. Obtaining every license is required, but as licenses do not count toward game completion, it is not required to obtain all golds. Either Vauxhall or Opel manufacturer events need be completed in PAL versions, not both.
-Timing: The run begins when Simulation Mode starts and ends when the runner opens the game completion screen to show 98.2%/100.0%.
-Timer pausing: The timer can be paused, but only after the runner exits Simulation Mode, enters the Save Game screen, and saves the game (once Save Complete is displayed, the timer can be paused). The timer cannot be restarted until the runner enters the load game screen from the main menu and begins reloading the game (once the Choose Memory Card screen is displayed, the timer must be restarted). The runner is not allowed to enter any other menu except for the settings menu while the timer is paused. Furthermore, runs must be completed within a seven-day period starting from the minute the run begins.
