I'm running 0.3.5 and it loads the bios just fine for me. No problems here. I also have bios files in MyDocs aswell as in home/user.

Return to launcher/menu key dosent work, restarts instead.
Load/save state not present.
Still no disable sound.
I went into key conf just to look, when i started a game during the same session, i was promted the configuration setup implemented in 0.3.1 just before the bios loaded up.