Hi! I'm interested on running this game, and was wondering if USB Loaders are allowed given how this game was so scarcely distributed.

Hey, it should definitely be okay, at least for the beginning. I also did my run on a USB loader, but loading the disk through it (so I think its still load times of disk?). IF there will be more interest we can check out ways to somehow distinct runs between USB loader and not, if there is a too big difference in load times. Otherwise go for it!