First off, I would recommend using a program like MAME Plus! (
http://mame.emu-zone.org/) with a loader/menu program like AdvanceMENU (
http://advancemame.sourceforge.net/menu-readme.html). Using MAME32 consumes unnecessary resources on your computer and there is no reason why you shouldn't be able to use DirectDraw with a decent CPU.
My hardware setup is simply: 2GHz Dual Core 3800+ X2 with 512MB of RAM. I can use DirectDraw on all non-3D games without any problems (for example, all Mortal Kombat flavours run perfectly).
Second, you should get a decent CPU if you don't have one that is at least 2GHz. They are very cheap right now with a lot of 2.5+ GHz dual core AMDs going for less than $200. Remember that MAME is CPU intensive, and it really isn't going to matter which video card you have -- it's all about processor cycles.
Well, actually, not really. When you use DirectDraw, MAME could basically care less about your video card as everything is handled by the CPU. When you use Direct3D, however, your video card factors in more as far as stretching and display of the frames. Direct3D allows better performance of some games that are nearly impossible to play with DirectDraw unless you have a supercomputer. So, why use DirectDraw? Because it provides the most
authentic experience. This is what your ArcadeVGA is doing -- it's providing you with authentic resolutions on your authentic arcade monitor. If you simply use Direct3D, then you don't need an ArcadeVGA and you certainly don't need an arcade monitor. You just wasted your money.
All is not lost, however. Like I said, switch to MAME Plus!. Make sure that you have the latest drivers (off the CD) available for the ArcadeVGA. Just to be sure, I would do a clean install of your computer. Make sure you also have the TriSync utility (
http://www.ultimarc.com/AVGA_TriSync.exe) and the QuickRes utility (
http://www.ultimarc.com/quickres.exe) for the ArcadeVGA. You'll also need to run the AVRes utility (
http://www.mameworld.info/ubbthreads/download.php?Number=104088) to configure all the .ini files for each of your MAME roms to the proper resolutions.
Finally, you should setup your mame.ini file as follows (note that I've left out a bunch of sections, these are the most important):
#
# PERFORMANCE OPTIONS
#
autoframeskip 1
frameskip 0
frames_to_run 0
throttle 1
sleep 0
rdtsc 0
priority 1
multithreading 1
#
# VIDEO OPTIONS
#
video ddraw
numscreens 1
window 0
maximize 1
keepaspect 1
prescale 0
effect none
scale_effect none
pause_brightness 0.650000
waitvsync 0
syncrefresh 0
#
# DIRECTDRAW-SPECIFIC OPTIONS
#
hwstretch 0
#
# FULL SCREEN OPTIONS
#
triplebuffer 0
switchres 1
full_screen_brightness 1.000000
full_screen_contrast 1.000000
full_screen_gamma 1.000000
For most games, this works fine. The
triplebuffer setting I have set to zero
globally (in the mame.ini file), and will enable it
locally on some games (e.g. Paperboy). The reason is because on certain games, without triple buffering, there will be significant 'tearing' of the graphics on the screen. In other games, however, setting triplebuffer to one will cause the audio to become choppy. This happens most notably on CPU-intensive games like Marvel vs. Capcom.
You can change any setting in the mame.ini at the game-level by going to the appropriate game .ini file in the ini folder (e.g. ini/paperboy.ini).
Even at the end of your troubleshooting, if you find that your CPU is just too slow for some games and you don't want to purchase a new one, I would enable Direct3D for those games in the game's .ini file, leaving the 'authentic' settings for all other, older games.
The separate question of which looks better, i.e. DirectDraw vs. Direct3D is up to you. Everyone I have over loves the original look of the games caused by the scanlines using DirectDraw at the authentic resolutions. If, however, you think Direct3D is more attractive, then return your arcade monitor and ArcadeVGA and invest in a larger computer monitor and better video card. You'll find a computer monitor will last a lot longer, is cheaper to replace, and can display higher resolutions when using Direct3D.