When I enter, it always freezes for a bit at the loading screen, then when I am allowed in, the movement on the joypad doesn't work anymore. It doesn't happen anywhere else as far as I know?
Is there any settings I can play with to try and fix this?
It only occurs in the CCA seaside area? Are you able to move using the keyboard? It sounds very odd. I may be worth disabling PSOBB addons if you're using them (easiest method would be to rename the DLL and then rename it back).
Else try a fresh install of Ephinea PSO in a new folder.