For the record, yes advancemame is typically used to create custom perfect resolutions etc..etc... and works better usually from dos or linux... and is VERY picky about gfx cards. This is much, much worse in XP, where it struggles with most gfx cards.
However, it CAN be used WITHOUT all these fancy direct hardware control of your gfx cards issues - and in fact acts much like normal mame in this mode.
You've been recommened it because it does include extra lightgun code - specifically, I believe, code that detects if you are using either an act-labs or a guncon2 (although possibly only detects with one of the 2 guncon drivers) and, the last time I checked, auto-calibrates them on the fly (you need to point to the four corners of the screen apparantly). I have not used this myself, but am planning to look into it.
to use advancemame in windows with any kind of modern video card (with the possible exception of a geforce2) I would suggest in the config look for device_video:
It probably says: device_video auto
change to:
device_video sdl
and if you want full screen (test with above first)
device_video_output fullscreen
This works for me. Note that the using the sdl driver removes all the super fancy auto clock pixel generation techniques in advancemame, but then you were not after those anyway.