Cheers calamity I know understand that I need to sacrifice neo resolution or the mame/pc settings. Having tinkered with it today. I have altered the vertical pot to almost stretch the screen to its vertical limit, minus a little bit. I only have a 14inch screen so dont want to loose too much ! Then I did the following and its looking FANTASTIC. There is a few lines missing top and bottom from rtype but pcaman now looks great !
Thanks for all the help and a lot of forum posts on here ! Need a good all in one guide

Anyway if this helps others
I tried several different settings, anyway this is what has fixed it in the end.
Deleted c:\emulators\mame32\mame.ini AGAIN
Renamed my c:\emulators\mame32\ini FOLDER to INIOLD
Renamed groovymame.exe as too long to type its full name !
Went to DOS typed C:\emulators\mame32\groovymame.exe -CC
Then installed catalyst driver 6.5 from here
http://mame.3feetunder.com/windows-ati-crt-emudriver/Interestingly they reccomend the below so if my shutlle ever blows up, it will be a cheaper alternatvive to arcade vga .....
Some cards listed above have known problems with low dot clocks.
For best results, a Radeon 9250 (AGP), Radeon X300-X600 (PCIe),
or Radeon HD 4xxx (PCIe) card is recommended.
Rebooted and Windows XP screen was fine but then screen picture unreadable as wrong frequency\settings.
Whoops forgot to set soft15K !
Restarted XP pressed F8
Loaded windows in VGA NOT Safe mode
Installed Soft 15K again and selected the graphics card. Thought is was a 7000 and accepted it fine.
Rebooted
Started Groovymame.exe and voila pacman fixed and looking pretty decent (at last can see bottom of maze and ghosts) !
Reconfigured Gameex to use Groovymame.exe instead of mame.exe.
Rebooted again and voila all works near perfect, even robocop (never got that working before) and final fight looks brill spot on for the screen.
Yes a slight hit on rtypre but it's hardly noticeable if you dont look for it, its a few lines top and bottom. Perhaps I can make a custom ini for that (If I can be bothered).
Thanks everyone forgot how good mame was in a cabinet !