A note on keyboard input, however:
I had a LOT of problems with my setup whenever I used the default keystroke config that came with the IPAC Ultimate I/O. Somewhere between 10-20 mins of play, the IPAC would totally bomb out, I'd lose ALL buttons, no response. If I unplugged/plugged the IPAC, everything would come back fine for another 10-20 mins. Really odd behavior.
I've always had doubts about repeatedly hammering CTRL, ALT, and SHIFT keys on a Win7 machine. Seen too many odd states of those keys, regardless of accessibility settings, sometimes sticky ctrl, sometimes an ALT that wouldn't release... so, within the IPAC mapping SW, I forced the first four buttons on P1 to be gamepad buttons. Remapped MAME, boom. No problems so far with at least a couple of 30 mins play sessions. IPAC seems stable now.
I think something was too sensitive on the Win7 build, and kept disconnecting the keyboard device with all the weird activity. Dunno. Once I switched it FROM keyboard input to gamepad buttons, no more problems (for now).