You said:
Sure enough, the Happ PS2/USB was fried.  
And
So we hook up the new Happ Golden Tee RED BOARD trackball to a mousehack and it works perfectly.  Turns out the problem was the Opti-pac.  
Which one was the problem? The USB/PS2 trackball or the Opti-Pac or both?
I ask because Just spent 300+ dollars on 2 USB/PS2 trackballs rom Happ. If these trackballs start doing what ya'll are talking about I am going to throw my whole machine out the window.
Thx
Mark
Hou TX
He had two separate problems with two separate trackball systems. 
Problem 1:  Happ PS2/USB trackball (trackball #1) stopped working correctly.  For some reason the optical sensors will not immediately recognize movement.  I don't know why, but probably the only easy fix would be to replace the whole board/sensor pcbs.
Problem 2:  He bought a Golden Tee trackball with red boards (trackball #2) with arcade harness and Opti-Pac to interface it to his computer.  That combo did not work.  We had to determine if the problem was the Opti-Pac or the trackball.  We hooked the trackball up to a USB mousehack and tested it.  The trackball worked perfectly indicating that the problem was the Opti-Pac.
Now, I personally own two separate Happ PS2/USB 3" trackballs that I use for MAME Golden Tee Golf on two separate cabinets.  Both trackballs work perfectly after a lot of Golden Tee/Tiger Woods Golf play.  I have yet to experience the problem I witnessed with Boodroe's trackball.  However, mccoy178 has reported having a similar problem, so the best I can guess is that some units are lemons.