First thing I did. Mapped the controls for that game.
Actually, I think I'll do a little troubleshooting. Run it from command line in mame and see if it does it.
I've had other controller problems. For example getting the throttle or twist on my wingman extreme to work with Ikari Warriors. No matter what I adjust the analog settings to, or how I change the axis saturation it does nothing to change the fact that about 1 degree on the joystic spins the character about 180 degrees. Digital simulation worked a bit, but I'd rather have the character position and joystick position to be absolute.