I didn't get a chance to mention over the christmas period, but I managed to get cheat engine to nop the instructions overwriting the x/y coordinates in the emulator. With that stopped, there shouldn't be any reason external x/y injection should not now work.
*****Edit****
Wow, much has happened in the last page or so.... ummm ok, where to Start [Insert Coin] Everyone cries! Bad pun's indeed
There are many ways to skin a cat in the quest to include working 2p Shooters for M2.
Vandale, thanks for proving to everyone that joysticks do infact work. Even if the data is sourced from the Wiimotes through PPJoy. Oddly enough, when I managed to do it, the normal crosshairs moved correctly? I didn't have a circle reticle, but that said I wasn't using any specific script but a basic dual wiimote to joystick script. Honestly, I thought I must have dreamed it at one point but I even grabbed the girlfriend and showed her and we played a couple of games (with the wiimote upside down because I hadn't remapped the buttons).
Memory injection is probably going to be the cleanest method in the long run. Given that people's machines will have multiple inputs and it's quite specific and even luck to get the ID's of the raw input devices correct when changing hardware around regularly for multi emulation machine setups. The OS is just gonna fight you with the hardware ID changing when devices are plugged in and removed. Howard is working mega hard on memory injection and if the modifications to Troubleshooter works out well, then it'll be a simple 1 application for many programs result. It'll just be nice and clean. As mentioned above Howard, I have some code being executed by the emulator itself (not the emulated ROM) which access's the X/Y Writes to the emulated game NOP'ed and it stops the crosshairs fine... so I can pass that on for you and we can make a trainer for the emulator to auto run as a hack to lock out it's control of the aiming.
On a side note, since I've been playing with Arduino's a bit lately, I'd even made a prototype sketch to pull joystick X/Y's from the system, send it over Com10 to the arduino and report it back through the same USB connector as a HID mouse with relative input data. It does work, but not an ideal fix since you'd need to buy and program your own arduino usb key, an P2 dongle so to speak lol. Interesting little gadget and especially cool if your into making your own HID input devices. It's a completely different kinda approach but been a fun learning exercise with arduino's over the last fortnight.
Great to see progress even if I'm not 100% available to help more... seriously... I need more time to do everything that needs to be done in a day. Spend 20 of the last 48 hours painting the brother in law's house...