I've got the joystick working. For mala, it seems like had to disable "require ultrastik to be plugged in" and also disable "joystick always as analog" in the ultramap software. I also downloaded the ultrastik mala plugin, but I'm not sure if that made a difference or not. One thing it did do though is run the ultramap software and switch the stick (at least I think so) to a 4 way, and after that I was able to scroll lists in Mala.
In MAME it has to do with the device ID's windows assigns. The Mini-pac and Ultrastik 360 are both seen as game pads in Windows XP, and no matter what I do, the ultrastik will always be assigned an ID higher than the Mini-pac. So Mini=ID1 and Ultrastik=ID2. If I plug in an Xbox 360 controller, it seems to ALWAYS be assigned ID1 and the other two get pushed down the list. MAME was enabling joystick support, but all the controls were mapped to "Joy 1." Since the Mini-pac was assigned in ID 1 by windows, I basically had to assign all the controls manually in the MAME user interface. MAME recognized the ultrstik as Joy 2. After I did this, MAME games seem to play fine. If however, I plug in an Xbox 360 controller again, the ultrastik immediately gets assigned ID 3 in windows and MAME stops working again.
So I guess unless a person is going to use the input of the U360 and not use a keyboard encoder, MAME should work right away, but if a U360 and a keyboard encoder are both used, one will have to configure MAME manually as the U360 joystick ID will be something other than ID1.
I hope this had made sense.