I believe the IPS Folder holds your individual settings per ROM. For example....
You have KOF95 or what ever rom you want to play. You have set it up to use different Button presses to better suit your personnal tastes. When you set the controls in the menu system it saves that into the games folder in IPS. Instead of the main Config file for Mame. That way when ever you load that rom it loads your personnal settings each time.
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Now I am not to sure what you are trying to do with the editing of the roms but there is a Cheat file you can utilize. Just download the latest Cheat file from
http://cheat.retrogames.com/pugsy.htm pugsy's site. Then copy that into your C:\Mame directory. The next step you have to do is open up the Mame config file in Notepad. Scroll down till you see.....
Cheat 0
Change that to ....
Cheat 1
Then save
Now you will have in your menu a thing called cheats in every game enjoy. If you meant something else I am not to sure what you meant because it was a little rough working through your post. Maybe if you could be more descriptive

Take care and enjoy!
-Soul