Success!
I re-did the chdman process on a 680mb hdd instead of the 2gb, and it worked! I don't know what the problem was with the other one (I did check the jumpers).
So now I can confirm that chdman (using a chd from MAME) does help rebuild dead arcade hdd's!
Now with that out of the way, on to the next problem:
The gun doesn't work. In player 1 position, the gun does nothing. If I change the plug to the player 2 position on the board, I can press the trigger and it 'reloads' but nothing shoots on the screen. Is this calibration or possibly the gun being faulty?
Thing is, I have a feeling that the wiring is bodgy from the gun to the board.
Does anybody have any guides, diagrams, or tips on how I can confirm that the gun is functional, that it is wired correctly, and that it calibrated properly?
On that subject, does anybody have a suitable red or blue gun they want to sell? This game is already missing one (the player 2 gun).
Again appologies for my newbieness to original arcade cabinets/boards.