I have a Crayola TB. To start with, the encoder wheels on the Crayola have a very small pitch, the teeth are almost hairlike. I believe they have somewhere around 40 teeth, and are about the diameter of a dime. I always had some backspin problems with it in Mame, when I really cranked it fast.
I have since modified the trackball, connecting it to my Opti-Pac, swapping out the optics with a low-res set from a cheap mouse, and cutting the number of teeth by 2/3, also thickening the teeth to help the optics pick up the motion. This greatly improved performance in most games. But there is still a problem with Centipede in particular.
When I use my trackball in other games (Missile Command, 720, Major Havoc) the cursor/character is quite responsive, and appears to move in direct correlation to the movement of the ball. But in Centipede, there seems to be a slight lag--no matter how fast I crank the ball, the ship just seems to move at its own pace. I have played Centipede on my faster workstation PC also, using an expensive Logitech optical mouse, and the same problem occurs. It seems to be something Mame-related, as I have played an original Centipede recently, and I can get the ship across the screen much faster than I can hope to in Mame.
By the way, I have tried a variety of settings in Mame for Centipede (I won't post them due to all the hardware hacks I use), and while it improves things a bit, it's never quite the same as the arcade. A lot of people on this board are having problems with Centipede, using anything from a Comp USA generic trackball, to an Imperial arcade TB. Cant say why this is...