You should not need all that jazz in the ini file command line. The -screen is to make sure it displays on the correct monitor. You can cut out the "-screen \\.\DISPLAY1" part. Hope that helps.
### List Generation Settings ###
rom_path C:\roms
rom_extension zip
dat_file
nms_file
catver_ini_file c:\mamep4\catver.ini
list_generation_method rom_folder_vs_listxml
### Execution Settings ###
pre_emulator_app_commandlines
emulator_commandline c:\mame116\mame.exe -screen \\.\DISPLAY1 [name]{nodosbox}
post_emulator_app_commandlines
general_app_commandlines