Shenmue seems to be the most well known example, but other AM2 games like Outtrigger and Virtua Fighter 3TB won't run on a Katana in either emulation or GD-ROM mode. The game stops at the "licensed by" screen.
(At least) for the working games I've tested in emulation mode, the TOC is read, the "licensed by" screen appears briefly, then the TOC is accessed again. For the games that don't work, the TOC isn't accessed a second time.
Some AM2 games do work like 18 Wheeler, F355, and Fighting Vipers.
Has anyone been able to resolve this problem?