No, I am firing completely off screen for 4-5 clicks and it still doesnt reload, so i am not moving the gun back on the screen in the middle of a click.
No, I'm not asking if you move the gun back to point on screen. I'm asking if
mame moves the crosshairs. (This has to do with the way actlabs gun and official mame work. I can go into how the lightgun and mame are supposed to work if you want know, but I can't promise I'll make sense.

)
The problem is a noted "feature" of the gun. Point off-screen and mouse button 2 is pressed at the location of the last on-screen shot. Official mame's hack isn't work like it should, but my machine acts differently than a couple others that have posted info on this buggy hack.
It's not needed, but I'd still be interested if you could discribe where the crosshairs move and where the game shoots with official mame when after shooting near the middle of the screen, you shoot off-screen. Please carfully watch the crosshair move and for the game image of the shot. I don't want to prejudice you, but for me the crosshair jumps (twice) and the shot is visible, but my location and timing is different than others. Your info might help fixing the official mame.
I will try analogmame when they do a 76 build and see if that fixes the shooting off screen.
It's out, finally.