Have you tried adjusting your settings for your spinner, both for mame itself, and for 720? By decreasing (or increasing) the sensitivity, it helps get things running a bit better for you...
I *think* that the original 720 had an analog-ish (more than 8 directions) joystick that was non-centering, due to the weird angle, and the 'spin' setup. Although it's possible it was a spinner, I'm pretty sure it was a joystick, just implemented differently.
If it's a joystick, then turning left/right on your spinner would basically point your guy left or right, which would be the problem.