(Also when I press down my buttons on 1 and 2..they output the same button [ex: a,s]

.......(ahhh so many problems!)
Im using my arcade controls for MAME and PSX
(What im doing marked with '*')
So whenever I touch a wire from the barrier strip to the ipac I get a constant continuity......like its being held down.
Your first one...like this :
((PSX CONTROLLER)
| | |
| | | *This is button 1 on IPAC4*
(0)(*0*)(0)(0)barrier strip) (*0*)(0)IPAC4)
|| | | | |
|| ------------------------------------------------ |
|--------------------------------------------------------|
|
(Arcade controls)