OK, I've figured it out...I'm such a boob...after I wired the player1 controls, I added wire ties to keep everything tidy, unfortunately I bent one of the connectors for 1SW4 and it was shorted against a ground...
I couldn't really see it...the lights of the IPAC fould just come on if I plugged it into the PS/2 port and turned on the PC...the way I saw the lights flash, was a reflection off the computer case, through the back of the cabinet, when I was disconnecting the regular keyboard, and plugging in the IPAC...
I also noticed that when I went to my desktop and tried doing some thing, that everytime I tried to click on an icon, it would select a whole bunch of them, like the shift key was stuck...I wish I had of tried this before posting this thread...
Oh well, thanks to everyone for their suggestions...