First off, don't map Dial LEFT and Dial RIGHT.
That would have the same effect as the spinner being a button that is pressed as soon as it is turned left or right.
Only map Dial Analog X.
Second, the only adjustment under the analog menu in MAME that you need to worry about is SENSETIVITY.
The adjustments that contain the word DIGITAL are for when you are using buttons in place of an analog control.
Example: you are using buttons in place of the original analog pedals, but the car in Pole Position squeals the tires and loses time whenever you start out.
Lowering DIGITAL speed will reduce the speed at which the virtual analog control is depressed when you hit the button, instead of being instant-on.
Changing DIGITAL centering will alter the speed at which the virtual analog control returns to center when you release the button.