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Any ideas?

Uh... could you explain better what is happening? With what game/settings/cheats?

The game is RE:Code Veronica X. I load up the codebreaker select "master code cheat" "infinite health" hit start, select start game it then brings up a prompt telling me to insert my game disc. I do so then hit x to boot the game. I then hit F3 hoping to load into my current saved state on pcsx2 and it gives me this message in the console "Saveslot 0 cannot be loaded; slot does not exist <file not found>. I go to the sstate folder and the save files are clearly there so I have no idea what could be the problem.

The problem is the save state is made for the disc that was loaded in the beginning, so if you loaded code veronica then made a save state it will be different than loading the codebreaker disc (you would make/laod a save state for the codebreaker disc in this case).

You can however convert the codebreaker code and use it in PCSX2 or just use a memcard save instead of a savestate loading from codebreaker.
http://forums.pcsx2.net/Thread-redlof-s-...-for-newbs
http://forums.pcsx2.net/Thread-Making-ch...hes-easier

Maybe you could check in the latest beta but I'm not sure how that would work...