if I understand the pacman thing correctly it would be like having two microswitches.. one with left on the N.C terminal and right on the N.O or vice versa.. and the same for up and down..
Not exactly. Here's the way I understood it:
The controller is always directing Pac-Man to go in exactly one direction. If the direction is currently vertical, and the "vertical" key is pressed, then Pac-Man reverses direction. If the direction is currently vertical, and the "horizontal" key is pressed, Pac-Man stops going vertically and goes horizontally (either in the last horizontal direction he previously went, or the opposite direction to that... I'm not sure which would be better.) Then take the above rules and swap "vertical" and "horizontal" to get the rules for when the current direction is horizontal.
In other words, let's say Pac-Man starts off going left. I press "vertical" at a particular time, and he starts going up. Then I press "vertical" again and he starts going down, then "horizontal" and he goes left again. Then to get the power pellet "vertical" would have to be pressed twice with the appropriate timing, once to switch to vertical and again to go up. Then horizontal, vertical, and Pac-Man is powered up.
This solution isn't ideal - really, it might be better if the controller knew how to navigate the maze. Then the controller could work cooperatively with the player, and the use of only two inputs might be less limiting. But that requires the ability to inspect the game's state... which is beyond the scope of what I'm readily able to do.

I don't know the exact requirements for this (that is, I don't know the limitations of the user) but I'm assuming buttons can't easily be pressed and
held in the closed position. I'm also assuming he can't trigger both at once. If he could reliably trigger both at once, it'd be easier to provide full control of Pac-Man: push "left" switch to change direction counter-clockwise, push "right" switch to change direction clockwise, push both to reverse direction. That'd be full game control right there, with no compromises.