Just an update on my ipac oddyssey (",)
I picked up one of those little adapters a few weeks ago from the local ipac dealer. I took one look at it and thought that he'd sent me the wrong part. For some reason it looked like it converted a USB cable to ps2. Today I looked at it again and it quite obviously does what I was told it would do. It changes the end of a ps2 cable to a usb. Which is exactly what I needed. This is the part Andy is talking about

So I set it up, changing the jumper on the ipac to usb. restart the cab, let it update the drivers for it and tried it out. It works, which is good, but still exactly the same problem as before

While I was in a testin' mood, I finally dragged my duel boot pc over to the cab to try the ipac on that. Booted up, and then the monitor shut down! I rebooted it into Linux, and everything was fine. Hmmm. Tried windows again. Again with the black screen. Booted into Linux and desperately had a look to see if I had mame on it. Nope. Set the pc back where I grabbed it from, and it boots into windows just fine! WTF? I sure am surrounded by a lot of crappy equipment!
So anyway, this is what I've eliminated for sure so far:
mame cabs ps2 connection (same problem occurred in USB mode)
the ps2 cable in the cab (I used a spare to hook up the pc to the ipac)
Basically, in all this time, I still haven't figured out whether it's the IPAC or the mame cab pc!
I will try and get a friend over with mame on a laptop and try again. To be continued...
Edit: Just re-read my first post. Maybe I have narrowed it down to the ipac. The ipac has the same problem with either ps2 or usb. But when I tried a usb gamepad, no problem. Bugger. Oh wait. I also tried it with a ps2 keyboard and it had the problem. What the hell. I might go and try the game pad and the keyboard again to verify.