Here's what I have and it's been working fine for me.
EMU config
++++++++
;LIST GENERATION SETTINGS
ROM Path = D:\DAPHNE\MPEG2
ROM Extension = TXT
List Generation Method = 0
;EXECUTION SETTINGS
Emulator Executable = D:\DAPHNE\DAPHNE.BAT
Send ROM Path = False
Send ROM Extension = False
Use Long Filenames = False
Show DOS Box = 0
Default Options =
Extra Options #1 =
Extra Options #2 =
IPC Filename / Path =
;MISC SETTINGS
Emulator Title = daphne
Artwork #1 Image Path = D:\DAPHNE\DAPHNE_TITLES
Artwork #2 Image Path = D:\DAPHNE\DAPHNE_MARQUEES
-----------------------------------
DAPHNE.BAT (executible)
+++++++++
start /wait d:\daphne\daphne.exe %1 vldp -framefile d:\daphne\mpeg2\%1.txt -fullscreen
Exit
----------------------------------
DAPHNE.NMS (list for emu name to display|rom name)
+++++++++
Space Ace|ace
Dragon's Lair|lair
Galaxy Rangers|galaxy
CLiff Hanger|Cliff
Hope this helps,
-Goz