It definitely does not work directly from the disc image in explorer, cannot extract the files from the game, I have tried just about every type of image software like ISOBuster, CDMage, PSXMC, PSXPlay, none of them allow me to do anything with the XA files from Tobal 2.

Does anyone have a way to extract the XA files from this!?

I had the same problems with the MediEvil II ISO CDImage.... I was able to view all the .XA files but couldn't extract them.... I've solved the problem by burning it into a CD-R and then do the extraction from there.

I`ve seen a rip there (http://psf.hcs64.com/t/Tobal%202%20(1997)(Dream%20Factory)(Squaresoft)%5b Streams%5d.zip)
And you trouble seems to be the same one about which I wrote here (http://forums.ffshrine.org/showthread.php?p=1429147#post1429147)

PSXMC worked really good for me...up until the trial time ended. Fucking gay. :/

I`ve burned it on CD and now PSXMC works! And I`ve been wondering why PSXMC doesn`t work with any PS game