Have you looked at AutoBleem? Or are you still using Bleemsync? AutoBleem adds a much nicer front end and a lot of much nicer features, especially for PSX games, and you can add RetroArch to it by just putting its folder in the root of the usb stick. It even allows the built in games to be shown and accessible at the same time. It also adds four save state game slots per game.
Autobleem will solve your restarting issue as it configured L2 + R2 pressed together to reset the system.