First of all i'd like to say thank you to anyone who takes the time to help me with this annoying problem. I've tried to figure this out for 3 weeks now, because i really didn't want to post at the first sign of it not working, and wanted to figure this out for myself without troubling anyone. Failed i guess

I'll do my best to supply all the information i can think that is necessary along with pictures and video of my problem. Forgive me if i ramble, trying not to be too long winded here.
Disclaimer: I have zero experience with any cab building (as most people when they first start:P) nor have i done any electrical work in my life. (i bring this up because i have perfect 360 happ joysticks)
When the ipac first gets power, it flashes two times, and then goes off. Once windows starts to boot, it comes back on, and stays on the remainder of the time the board has power. I checked ultimarcs chart, and this "flash pattern" is supposed to indicate that the motherboard usb controllers are not turned on (at least this is the way i interpreted it) With that in mind, i've checked the usb controllers, and anything else that has to do with USB support for keyboards, and even made sure i was using Usb 2.0 drivers. All of that is set correctly, but i still get the flash. Have also tested a usb keyboard on the pc, and it works perfectly
Ok, this is the really tricky part. Like i said before i get the flash everytime. Sometimes though (i'd say 50ish%) the board powers on, does the flash, does it's thing, and when max arcade is loading, 5 keys get into a spam mode and go crazy (the reason i know it's 5 keys is because i have tested this problem in notepad and keyboard test when it's doing it. You will notice in the video included that when the max arcade demo nag screen pops up, some of the keys are getting fired like mad. at this point i have closed out max arcade and tested the buttons in notepad and keyboard test, and one thing that is a common theme is after the board goes into bezerker mode (firing 5 keys rapidly) the button presses eventually stop, but some keys become completely non-functional. At this point no matter what i do, reboot max arcade a million times, i can't select an emulator with the button i have set (player 1 start) until i unplug the ipac and reboot. Sometimes i have to do this several times before it gets working again. at this point, even if i try to use the keyboard to control max arcade "the same keys that don't work on the arcade buttons, does not work on the keyboard. Check out the videos i have included.
everything working as intended:
[youtube]http://www.youtube.com/watch?v=b7o5A7qextM[/youtube]
Everything going insane:
[youtube]http://www.youtube.com/watch?v=aHWM7gjmS9Q[/youtube]
As you can see, some very odd things going on here. going to post a few pics of my set up, to see if there is any wiring mistakes that i may have made.
in this photo i traced my ground wire that is daisy chained with a yellow line, my question is: Should all of the ground start on one side of the board, and go to everything on the panel then back into the right side? Or is it ok, to wire each side to the ground connectors?

Ok, here are some additional photos that may be of some help:
player 1 wiring

player 2 wiring

close up of ipac2 wiring:

+5v supplied to Happ 360 joysticks

is this correct?
Something that i hate to admit, much less mention here is that i put the perfect 360 joysticks in wrong, i misread the directions and didn't realize until it was too late. So instead of re-drilling holes, i figured out that left = up, right =down etc (this isn't necessarily how it is exactly, just using this as an example) so when everything works right, the corresponding directional movements work fine. I am mentioning this just because i wanna get it all out on the table =) But i honestly don't think this is the problem. Ok, well it's getting late and i have to work tomorrow. I really wanted to get this posted tonight so i can check the responses at work tomorrow =)
If anyone has a solution or and idea to try, i am indebted to you forever!