does the cursor wrap all the way around and come back on the other side?
Yep it sure does! If I move it too far to the left, it jumps over to the right side, until the lense reaches the edge of the screen then it simply stops. Doesn't do this for up and down.
I thought the lightgun was set up as a mouse with absolute coordinate.
I wish I knew what that meant....I'd say something. LOL
Do TWO guns work or can you only use a single Guncon2?
Smog is working on a way to incorporate two guns. The problem is that XP doesn't even want to work with 2 mouses, much less 3 (don't forget about the regular mouse). He does plan to make it work but it's hard since mame mainly supports guns as mouses.
If two guns work, is the driver working enough to play games in MAME like Area51, etc...?
Not unless you naturally aim 6 inches off to one side. If your shot is that bad it might work great for you!

Seriously though, the current driver has alighment issue as I stated previously and isn't ready for actual gameplay yet, it's strictly for testing purposes at this point, until he makes a few more changes. Not really time to run out and buy Guncons yet, unless you just want to play around with it.
In fact I borrowed the Guncon I'm currently using JUST to seek out a driver. I didn't even own a PS2 at that time. Luckily I do now and the working driver is just over the horizon.
Time for me to pick up Time Crisis 3 and a Guncon2......