Hi Calamity. After further reading and just plain trial and error, I think I've got the joystick working. For mala, it seems like had to disable "require ultrastik to be plugged in" and also disable "joystick always as analog" in the ultramap software. I also downloaded the ultrastk mala plugin, but I'm not sure if that made a difference or not.
In GroovyUME (MAME) it has to do with the device ID's windows assigns. The Mini-pac and Ultrastik 360 are both seen as game pads in Windows XP, and no matter what I do, the ultrastik will always be assigned an ID higher (or lower I guess would be the proper way of putting it) than the Mini-pac. So Mini=ID1 and Ultrastik=ID2. If I plug in an Xbox 360 controller, it seems to ALWAYS be assigned ID1 and the other two get pushed down the list. MAME was enabling joystick support, but all the controls were mapped to "Joy 1." Since the Mini-pac was assigned in ID 1 by windows, I basically had to assign all the controls manually in the MAME user interface. MAME recognized the ultrastik as Joy 2. After I did this, MAME games seem to play fine. If, however, I plug in an Xbox 360 controller again, the ultrastik immediately gets assigned ID 3 in windows and MAME stops working again unless I'd manually assign the joystick functions.
So I guess unless a person is going to use the input of the U360 and not use a keyboard encoder, MAME should work right away, but if a U360 and a keyboard encoder are both used, one will have to configure MAME manually as the U360 joystick ID will be something other than ID1. And if one wants to plug in a controller at a later point, especially an Xbox 360 controller, well, it'll just be a real headache. Bottom line, I learned that I'll have to plan all my controls beforehand, and not change them unless I want to reconfigure everything. So it seems like it's a windows problem and not a GroovyUME/MAME problem. Andy said that with the U360's it's a real problem in the way Windows assigns Device ID's.
I hope this had made sense.