Randy, didn't I read somewhere you can alter the poll rate in XP somewhere? ok the resolution may not be entirely suitable but maybe toying with the poll rate would help. MAME can adjust the analog sensitivity in-game anyway can't it?
If you are referring to the TT2, then the resolution is quite suitable, but the Tornado has less than 1/6th the resolution, and no amount of polling will change that.
The problem with increasing sensitivity is that you will have, depending on the title, only 1/4 or less of the directions normally available to the player, as the others will sit "between the teeth" on a low res spinner. This will result in the player needing to "oscillate" the control, much like one would with a joystick, to maintain a heading. Not so easy to do with a wheel, especially a large one, which requires more surface inches of movement per "tooth" on the encoder.
Imagine if you needed to turn the steering wheel on your real car a full revolution every time you went around a corner. That's the alternative to "skipping" on a low res spinner. There are reasons why most, if not all, arcade steering wheels have the same type of gearing found on Arkanoid spinners, and to play the games properly, you need to have something that can do the same thing.
RandyT