Ok. Thanks for all the replies.
This is where I have gotten:
The PC is indeed an AMD Athlon XP 2500+, 1.83 GHz and 1GB Ram
Proposed video mode not supported on device \\.\DISPLAY1
Unable to initialize Direct3D.
I looked around online and it seems like it has something to do with the Direct3D. I changed my ini to use DirectDRAW and it works - but the audio and video are painfully slow.
[aside: I have an integrated video card (on an ABIT NF-7m mobo). I also have an extra MSI 128mb video card (Radeon 9200 SE?) that I could use instead. Probably better than my integrated, no?]
A lot of threads I found seemed to come to the "I guess my computer can't run version XX" conclusion and then they reverted to an earlier version. Somebody mentioned a change that happened to the way MAME handled the video... this could be the problem.
I would tend to think my computer should be able to run the current MAME version.
I tried running DirectX, but I don't know if it installed. I'm using TinyXP so I doubt I would validate on the MS site, so I got it from someplace else but when I run dxdiag, it can't find anything.
[please forgive my idiocy when it comes to the computer settings side. I can make a
cabinet like nobody's business, but kinda stupid on the tail end. This project has been going on f o r e v e r - thanks for your help]