I then bought an X-arcade joystick which was not very responsive and to make it responsive I have to open the whole thing and move the pins whch was getting a bit annoying after doing it a few times 
In this case, if you build your own, you want to avoid the Super or X-Arcade joysticks (levered microswitches) and go with Happ Competitions (straight microswitches) of Happ P360's (optical switches, $$$$),
www.happcontrols.com. Another problem with the joystick is that when I play with the friend, the player 2 side would stick down (on screen) when 2 players are playing at one time. I called them and they said that they will be sending me the usb adapter. The problem with the adapter is that when 2 players play smulataneously, the buttons wont work especially when many buttons are pressed. So I sent it back and got the refund. 
Seems very odd to me that they sent you a USB adapter since USB has more limitations on simultaneous keypresses than PS/2 (keyboard) ports do. I am pretty sure X-arcade uses a matrix mode encoder. This is the second report I have heard of dropped keys with an X-arcade, but I have read dozens of reviews that should have tested for that and didn't report any problems. Weird???
Now I am trying to find an arcade style joystick which is responsive, durable 1 player arcade joystick which is cheaper (up to $40) and can work perfectly with my dell. Can anyone find me one?
I have seen one Soul calibure 6 button joystick on ebay for ps2. Does a console adapter do a good job? Should I go for it. Anyone tried it?
I assume you mean this:
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=3020412570&category=27255
I haven't tried this particular one, but I did look at a BLAZE Twin Shock at Electronics Boutique for $20.00 (
http://www.psillustrated.com/hr_blaze_twinshock.html) To me the buttons and stick felt very poor quality and cheesy, especially compared to an X-arcade. If you don't mind this, the adapters should do a good job.
I agree with LilWolf on building your own, but since you mention the PS/2 stick, I take it you are looking for a pre-built solution, and if you don't have carpentry and electrical (soldering) skills, the cost will be higher than LilWolf mentioned.
Unfortunately, there really aren't any one player sticks out there for less than $40, AFAIK. The best option would probably be the X-Arcade Solo for $99, and while a single player stick should have less ghosting, I doubt you want to go back to the product you just returned.
http://www.gamecabinetsinc.com/joystickkit.htm has a page where you can design your own kit, but it comes to $100 after you select all the items.
http://www.fantasypc.net/Arcade%20Controls.htmlhas a single player joystick for $65 dollars, but I don't know anything else about them.
Finally
http://home.iprimus.com.au/IP-PWP03/41/ozstick/prod_joy.html has some great products and are good to work with (note U.S. prices are 1/2 what's shown as the site lists AUD), but you have to pay shipping from Australia.
Also, you can probably find a HotRod joystick (two-player) on E-bay for around $100 dollars, but I don't know if they have ghosting problems or not.