Thankyou for that!!
At last a bit of progress!
Ok im now getting a bit of movement, when I test it in Ikari I get the following -
1) Character only rotates in 1 direction (to the right) even if you turn the stick left he goes right!
2) only Turns 1 position and then returns back to the original position
If in windows I turn the stick left or right the mouse does move, but to the left!
Hope that makes sense, im gonna have another good look at the wiring again tonight as some of the wires that connect to the optical encoder look very thin
Are there any settings in mame that need to be made though?
Thankyou for you help, much appreciated!