Usually the ePSXe is on 'Auto-detect' and will automatically recognize that your using a PAL version. If it isnt working, try opening up the ePSXe console, click the 'Options', go to 'Country' and select 'PAL'.
PAL and NTSC are regional codes. I think Europe and Asia use the PAL whereas North America uses NTSC. This system of regional codes is outdated and wont be used in future consoles apparently.