All I have to say is this message forum kicks ass.  If anyone is running Mame 32 with the previous suggestions above, this is what I did and it worked awesome for me.  I put it on 2 player and got both players going on the screen.  I then hit the tab button and began configuring the buttons, it worked like a charm.  Like it says above, do NOT put the game on pause, for some reason this screws the configuration up, just keep the game running.  BTW for those having a problem with the player 1 block button, in the menu, for some reason the player 1 button 3 is listed 2 times.  You have to change both of them to the same button that you want.  Now I am set up perfectly.  Thanks for everyone's help.
Button 1: High Punch
Button 2: Block
Button 3: Hich Kick
Button 4: Low Punch
Button 5: Run
Button 6: Low Kick