I have an old Ipac with the same problem, no auto key repeat. I made a quick autohotkey script, which enables basic key repeat.
Here is a link to the thread with the download. There were two versions, one was a compiled .exe that you add to your startup folder, and will add key repeat for the standard player one controls. The other is the actual script, you will need to install autohotkey to use it. If you want to add support for the player two joystick, you will need to modify the script, it should be simple.
Hope this helps, let me know if it does or doesn't work. It's not perfect but seems to work OK for me.
Koz