cool. so I have the images and art displaying very nicely on my second monitor.  It looks great by the way!
I still can't get the control panel to look right though.. i moved the mame.ini to the root folder (where mame.exe is) and i even tried moving the .cfg to the root folder to see if that made a difference. The buttons are still labeled wrong =/ I'm almost there, I can taste it.  

*edit* just had a though, is it reading the default.cfg or does the program read the mame.ini to see where the file is located, I copy and pasted the relevant parts of my mame.ini to show that this is not the issue.
Also I just noticed, even with these default controllers.. player 2's buttons don't match player 1's (like in street figher the last 2 kick buttons are missing).  I guess this is the part that confuses me.  Even if it doesn't match my buttons, why are the last 2 kick buttons not showing w/ labels?
I even deleted every .cfg but the .cfg I used, I tried copying and pasting everything from my .cfg to the default.cfg just in case it was reading that. I troed it with a fresh install of mame.exe (not the gui version) i get the same keys missing from player 2 in street fighter games. I place the mame.ini and controller file and still nothing.  I'm stumped. It feels like I'm missing something  simple.
*edit**edit* ok, so the last 2 buttons for player 2 are missing because the mame defaults for p2 button 5 and 6 are mapped onto a joypad.  So it must be reading the default.. but from where? I deleted all the .cfgs
rompath                   roms;K:\Games\MAME\roms;M:\---They-Who-Should-Not-Be-Named-Here---\mame32b\roms
samplepath                samples
artpath                   M:\---They-Who-Should-Not-Be-Named-Here---\mame32b\artwork
ctrlrpath                 ctrlr
inipath                   ini
fontpath                  .
cheatpath                 cheat
crosshairpath             crosshair
#
# CORE INPUT OPTIONS
#
coin_lockout              1
ctrlr                     "Omars Arcade"
mouse                     1
joystick                  1
lightgun                  1
multikeyboard             0
multimouse                1
steadykey                 0
offscreen_reload          0
joystick_map              auto
joystick_deadzone         0.3
joystick_saturation       0.85
natural                   0
uimodekey                 auto