Issue resolved - I figured it out.
Using Uncle Tom's MALA instructions first for directory structure and latest verison of daphne into the "D:\EMULATORS\Programs\daphne" directory
frame files:
D:\EMULATORS\Programs\daphne\framefile\lair.txt
should look like this:
D:\EMULATORS\Programs\daphne\games\lair
151 lair.m2v
games should be put in their own directory:
D:\EMULATORS\Programs\daphne\games\lair
(all DL files go here)
D:\EMULATORS\RomFiles\Daphne
create bat files
example for dragons lair
start/wait %1 D:\EMULATORS\Programs\daphne\daphne.exe lair vldp -framefile "D:\Emulators\Programs\Daphne\framefile\lair.txt" -opengl -x 800 -y 600 -sram_continuous_update -enable_leds -fastboot -nolog -fullscreen -blank_skips -blank_searches
name file "Dragons_Lair.bat"
in the options for MALA leave the executable field BLANK!!
put this in the roms field
D:\EMULATORS\RomFiles\Daphne
rom extensions should be "bat"
under options snap,
put "D:\EMULATORS\Snaps\Daphne"
name the snap file as "Dragons_Lair.jpg"
only problem so far is when you exit the game the layout gets shifted on the screen. Probably a resolution issue.

thanks,
gk