It still doesn't play right. The MAME code has the inputs mapped to the wrong input type for perfect emulation. Barring the use of a real Ikari PCB, you can't get perfect play. The best options available are:
Mechanical rotary joysticks run through a Druin's encoder. Sadly, the Druin's board is currently off the market. Rdagger posted some info for a DIY rotary encoder a while back, you could try that. Most folks find that they still get missed/extra turns every once in a while.
Optical rotary joysticks run through a mousehack, OptiWiz, OptiPac, etc. These won't have the same feel as the original sticks, the click-feel will be missing. However, since MAME doesn't always keep sync with the clicks, this may be preferable, at least until such time as somebody fixes the input issue with MAME.
As for the sticks themselves, you can look for original SNK octagon-topped sticks on Ebay, or buy the Happ replacements, which have a standard black bat-top. Yellow topped SNK's are mechanical rotary, Green topped SNK's are optical rotary.
Hope this helps.