I am having the same issue. How exactly did you fix this?
At the elf menu, I hold down the 1P button and it takes me to a screen that says "Press S1 to set up" and none of the buttons are responsive. The buttons are also unresponsive in the Game List screen but if I let it run until the Defender screen saver comes on and hold the 1P button it gives me the option to "Continue" or "Exit" - if I choose Continue, nothing happens, if I choose Exit I return back to the Game List screen and start all over again.
Please, any advice or help would be greatly appreciated.
Thanks.