Hi again,
I have tried what you suggested.  I changed everything to use the E:\Mame\ directory instead of E:\Mame32.  I moved extra art there, as well.  (I had, for example, a directory E:\Mame32\snap, but there was NOT a directory E:\Mame\snap.  So, I copied those sorts of folders into the E:\Mame directory.  is that right?  Now there IS an E:\MAme\snap full of nice .png files!)
Here is my Mame.cfg:
======================================================
[Config]
extension=.zip
path=E:\Mame\
exe=mame.exe
send rom path=1
send exit keys=0
command line options=-ctrlr ragingdragon -lightgun -throttle
[Command Line Options]
If you wish to add extra command line options for a specific rom(s) use romname=command line options syntax.
For example:
#pacman=-resolution 640x480x32
or 
#area51=-lightgun
Of course, remove the "#," those are there to comment out the examples. You can use either the parent or clone name.
bzone=-noartwork_crop
=======================================================
And here is my dirs.ini:
=======================================================
[Dirs]
***Enter all your rom paths... Just like you do in a mame.ini
roms=E:\Mame\roms\
***Put These in as a base folder.  I.E. If your snaps are in "e:\mame\snap\"
***then the entry should be: "e:\mame\"
Primary Artwork Dir=e:\Mame\
Additional AW Dirs=
***The alternate elements allow you to have two more artwork elements besides the usual.
***Simply put the name of the sub folder (like "\controls\").
***Note:  Skins must have an alt-element slot defined for this to work.  
AltElement1=\cpanels\
AltElement2=\misc\
[startvd]
[path]
logo=Mame.png
caption=Mame
useclones=0
searchstrings:5=MAME
filters:6=*mature*;9=*Working No*;6=BIOS
[/path]
[/startvd]
=======================================================
When I run either the listgen.exe app, or select "Generate new List" (exact wording?) from inside the FE, they complete the task VERY quickly.  I would think it would take longer.  Here is a list of the contents of my E:\DK\list generator directory:
  listinfo.dat
  listgenlog.txt
  ListGen.exe.manifest
  ListGen.exe
  listdetails.dat
  gamelist.dat
  Dats\:
    readme.txt
  CatVers\:
    catver.zip
    catver.txt
    catver.ini
    catver readme.txt
Can I delete any of the above .Dat files to start over?  like, maybe I ran the list generator wrong once and now I need to start over?
Also, where do I find the font file you mentioned?  I couldn't check that 'cause I didn't know where it should be.
Thanks for you help!
--irken