quick questions here. Which is better the ps/2 I-PAC or Usb?
I see a Pandora's box with this one.  Short answer is opinions vary.  Andy Warne has lately been favoring USB.  RandyT prefers PS/2.  (Both say for performance reasons apart from what their encoders support).
I have seen some performance issues with my USB trackballs and have heard some reports of problems (usually fixable) with the USB I-PAC that don't exist in PS/2.
My personal advice would be to use PS/2 for an arcade cab, and maybe USB for a desktop controller.