Minwah
I've had the mame.ini file setup since the beginning.  I removed the auto next to resolution and put in 640x480.  I still have the same problem.
I was playing around with some of the games and I discovered that I'm really only having a problem with the Street Fighter Series and Mortal Kombat 3.  MK 1 and 2 run flawlessly.
Of course, when I start any of the Street Fighters or MK3 from the command line, they run fine.  When run through MameWah, they are very slow and choppy.  Active X being used with MameWah wouldn't have anything to do with the slowdown or choppiness, would it?
Anywho, my current setup is a 1Ghz P3, 256 Ram, Windows XP.
Maybe you could post your mame.ini file so I could see what settings I may be missing?  (If yours isn't too much different from the default created that is).
Thanks much!
EDIT: I just tried with Mame32 and the Street Fighter series works great with it's default settings...
EDIT: I checked out the debug.log.  The command being run is: c:\emulate\mame\mame.exe sf2   If I run this from the command line, everything runs fine.