Well mine does. I just started to play it again and it gets frozen usually after the first match of an arcade tournament. Luckily I could hook up my old PS1 to get it to work. I've also heard that every copy freezes after you beat Shao Kahn?
I know my copy is an older version though, cus in another thread Trynax said that he had an older version and in it Rain's pit fatality doesn't work - well Rain's pit F doesn't work in mine so I must have an older version, and I'm wondering if that has something to do with it?

So anyway... does yours work on the PS2 or not?