According to your ascii diagram it looks like each button is just mapped to a number. I have mine mapped to the buttons that mame uses such as left ctrl, left alt, space, shift, z, and x. I also have buttons mapped to esc, p, 5, and 1 for exit, pause, player 1 coin, and player 1 start respectively. That could be why they aren't performing the functions you're expecting?
Here are the mame defualt controls copied and pasted from another thread in this forum:
Player 1:
Button 1 - Left Control
Button 2 - Left Alt
Button 3 - Spacebar
Button 4 - Left Shift
Button 5 - Z
Button 6 - X
Button 7 - C
Button 8 - V
Button 9 - B
Button 10 - N
Start - 1
Coin - 5
Up - Up Arrow
Down - Down Arrow
Left - Left Arrow
Right - Right Arrow
Player 2:
Button 1 - A
Button 2 - S
Button 3 - Q
Button 4 - W
Up - R
Down - F
Left - D
Right - G
Start - 2
Coin - 6
Player 3:
Button 1 - Right Control
Button 2 - Right Shift
Button 3 - Enter
Up - I
Down - K
Left - J
Right - L
Start - 3
Coin - 7
Player 4:
Button 1 - 0 Pad
Button 2 - Del Pad
Button 3 - Enter Pad
Up - 8 Pad
Down - 2 Pad
Left - 4 Pad
Right - 6 Pad
Start - 4
Coin - 8