Well I was dying to make some progress on this tonight, so I just went ahead since I hadn't seen any replies yet. For anyone who is reading this thread out of sheer curiosity (and hope to do something similar one day), here's my update:
1. for info for anyone who's looking to do a similar project with their Monaco GP, the wiring for the shifter is as follows: yellow wire is NC, green wire is NO, and white wire is Com; the switch found under the arcade shifter is a MICRO roller switch. Under the roller is the switch piece that pushes in on contact.
2. I have not yet removed the switch button off of the mouse PCB because I wanted to be able to use it as a backup check in Windows (to make sure there wasn't something wrong with that PCB or its connectivity to the PC); what I did was hook up the wires from the arcade shifter to the pins on the BACK of the mouse pcb using those alligator-clip wires. The set I have comes in a variety of colors, so I was able to use the yellow, green, and white alligator-clips to match the wiring presently found attached to the arcade shifter
3. Windows recognizes both the original mouse switch, as well as the shifter (YAY), in the regular OS mode. However, MAME is not seeing either the mouse button switch OR the shifter action (BOO). I looked in the setup section, and tried switching the function from the spacebar (currently the default for MAME PP1) to either the switch button OR the arcade shifter (this is at the P1 button 3 setting), and it's not recognizing the response from either one. If I go back into Windows, the OS is seeing the mouse, it's recognizing that it's a PS/2 mouse, and it's saying it's working correctly according to the control panel. I also went into the "input (THIS GAME)" section, where one of the first settings is "gear up down" and it's showing as SPACEbar also, and trying to change that using either the arcade shifter, or its mated mouse button switch, is not being recognized.
Any help at this point would be greatly appreciated. The mouse is a PS/2 Microsoft Intellimouse.
We're not there yet with the shifter, but it's the first real "progress" I've had with the Monaco GP in any way shape or form so, I'm happy!