Did you try a new version of MAME and go to the driver configuration menu and select real control?
I just tested it w/ 0.143 and it worked great! I chose driver (REAL) and it still wasnt responding. I checked the INI and it had MOUSE_DEVICE Mouse it still wasnt responding to my controller or my mouse. I loaded it up in a DOS window: Mame -mouse 720 and it worked fine.
I then exited and went back into the INI and changed Dial_device from Keyboard to mouse and it started working immediately. I can even map the 720 controller by turning it back and forth when in CONTROLS THIS GAME.
I had some weird calibration issues,skater wasnt pointing in the right direction and I realized it was because my optical mouse was still hooked up and when it would move slightly or get bumped it would mess up the calibration. I tested this by pointing the joystick to 12 and then moving my mouse till it lined up properly and it was well, until I moved the mouse again. I started it up with the mouse unplugged and it was fine.
Since I do have a trackball to install as well, I am thinking that I will have to enable multimouse in INI so that neither control will affect the other.
Now begins the task of updating my Hypersin Setup to 0.143 w/ the new roms. Thanks to: Jake Stookey (jstookey), Andy @ Ultimarc,Derrick Renaud, U_rebelscum (MameAnalog+), and anybody else that may have helped me.
Please feel free to contact me if you need any help getting your original 720 arcade controller working in MAME, I will help.