Is there a way? Maybe a utility disc of some sort? I know mine had some issue where Spyro would stop working half way through.
Would be nice if there was something like this. All I could suggest is actually test the integrity of the backup disc and compare it to a good known dump from websites like Redump. That way you can at least eliminate one possible cause of the game stopping.
There really isn't, sadly - the modchip doesn't connect to the main CPU, it just injects signals into the CD mechanics controller. The best way to identify the chip is to open up the console and see where it's connected.