What brax said, wire the 4way to the same input at the player 1 8way, it's the same inputs anyway. that will leave you with extra buttons if you want a dedicated button for pause, quit, or whatever. Check out my cabinet, all that is wired to the IPAC2 (there was no IPAC4 when I got mine).
The buttons on the shefl, the left group of 4 are start and coin buttons. The middle three, quit, power, pause.
The spinner and trackball are USB...
To word it another way than TheNasty, a 4way joystick bocks the joystick from moving tot he diagnals. And 8way doesn't, hence eight directions then. But it still just has 4 buttons, it know the diagonal when the up and left button are pushed, etc...