Thanks anyway S Monkey but hitting F-1 doesn't seem to do anything. When I hit F-2 it puts me into the game menu but after that I can't do anything. I tried hitting every key on the keyboard and nothing works. Thats what makes me think that two keys have to be hit at the same time or maybe one key has to be held while you another is pressed to scroll and select. 
This is really bugging me. I have been able to figure out this on most other games I've played but Q-bert has me stumped. 
Cool, I didn't know you could do this, but I figured it out.
F2 brings up the Dip/Switch menu (Toggle on and off) Text says "Press Select Momentarily to select Test, Press and hold Select to begin Test.
Select is F1 for me . . . And I didn't see where you could set it to something else, I think it's hard coded in MAME.
Anyway, don't know how you're getting to the lives screen if F1 is not working, but . . .
Press F1 three time to go to "4 Option/Parameters, then Press and hold it, text says "Press Select to move arrow, Press Start button to change values or activate".
Press F1 three times to get to Lives value.
Press "1" (Start) to toggle between 3, 4, or 5 lives.
Press F2 to quit.