Yeah, the default deadzone is huge.
Here is the setup procedure I posted like a decade ago, lol.
1. Calibrate the positional gun in windows (game controllers) by pointing it along the edges of the screen.
2. In mame.ini set the dead zone to zero.
3. In mame.ini set the saturation to 1 (100%)
4. Calibrate the gun in the game's service menu
5. Adjust the sensetivity under analogue controls in MAME's in-game menu until the crosshairs don't lag behind the gun movement.
(there is only ONE sensetivity setting, ignore all settings that include the word DIGITAL)
Saturation sets how far you have to turn the gun before MAME sees it as turned to the limit. If set to .85, the game will see it as turned all the way when it is only 85% turned.
The game's in-game calibration menu corrects for it, but the old Exidy gun games do not have in game calibration.
You may be able to improve accuracy in those games by tweaking the saturation setting in the game's individual ini file.