Yes, Its an ATI Mobility Radeon. I'll Be back after fiddling with some more settings then. 
And wow! Fast reply
Thanks.
*edit, It works now, somewhat. The increase in RAM usage is lower. With Catalyst AI on, PPSSPP went upto 3.1GB RAM before crashing, now with it turned off after playing the same video, it went to ~124MB. But what seems strange is it doesn't come down after the video playback is done.

And wow! Fast reply
Thanks.*edit, It works now, somewhat. The increase in RAM usage is lower. With Catalyst AI on, PPSSPP went upto 3.1GB RAM before crashing, now with it turned off after playing the same video, it went to ~124MB. But what seems strange is it doesn't come down after the video playback is done.

